Asia mar­kets up on Greece hopes

The China Post - - BUSINESS INDEX & -

Asian mar­kets mostly rose Mon­day af­ter Greece gave cred­i­tors new pro­pos­als on re­form­ing its bailout, fu­el­ing hopes of avert­ing a de­fault and pos­si­ble exit from the eu­ro­zone.

The euro also ad­vanced af­ter Brus­sels said it had re­ceived the plans a day be­fore a emer­gency Euro­pean sum­mit Mon­day, with the of­fice of Greek Prime Min­is­ter Alexis Tsipras call­ing it a “mu­tu­ally ben­e­fi­cial deal.”

Tokyo ral­lied 1.26 per­cent, or 253.95 points, to 20,428.19 and Seoul gained 0.40 per­cent, or 8.20 points to 2,055.16, while Syd­ney re­versed early losses to add 0.24 per­cent, or 13.20 points, to 5,610.20.

Hong Kong jumped 1.20 per­cent, or 320.32 points, to 27,080.85.

Shang­hai was closed for a public hol­i­day.

The news also sent Euro­pean shares soar­ing in early trade. Athens surged more than 7 per­cent, Ger­many and Paris each jumped more than 3 per­cent and Lon­don was up 1.40 per­cent.

While it is not clear what con­ces­sions have been of­fered, Martin Sel­mayr, the head of the cab­i­net of Euro­pean Com­mis­sion Pres­i­dent Jean-Claude Juncker, said the Athens pro­posal of­fered “a good ba­sis for progress.”

How­ever, he un­der­scored the tu­mult sur­round­ing the deal by de­scrib­ing the ne­go­ti­a­tions as a “for­ceps de­liv­ery.”

The plans were sub­mit­ted af­ter Tsipras held talks with Ger­man Chan­cel­lor An­gela Merkel, French Pres­i­dent Fran­cois Hol­lande and Juncker.

An­a­lysts said the move was cheered in Asian trad­ing rooms. “Orig­i­nally there wasn’t go­ing to be one, so the fact that there’s a new pro­posal on the ta­ble ap­pears to be seen fa­vor­ably,” Shoji Hi­rakawa, chief eq­uity strate­gist at Okasan Se­cu­ri­ties Co. in Tokyo, told Bloomberg News.

The heads of the 19 eu­ro­zone coun­tries will hold an emer­gency sum­mit in Brus­sels later Mon­day, un­der pres­sure to pre­vent Greece from de­fault­ing on its debt.

If the two sides are un­able to agree a deal, Greece will likely de­fault on an IMF debt pay­ment of around 1.5 bil­lion eu­ros due on June 30, lead­ing to the pos­si­bil­ity of it crash­ing out of the eu­ro­zone.

Greece said its new pro­pos­als were aimed at reach­ing a “de­fin­i­tive so­lu­tion” to end the stand­off with cred­i­tors.

On Mon­day morn­ing France’s fi­nance min­is­ter Michel Sapin hailed the “qual­ity” work around Athens’ latest pro­pos­als. He told French ra­dio: “I see the work that has been done. It is qual­ity work,” adding that talks were pro­ceed­ing in “good con­di­tions.”

EU eco­nomic af­fairs com­mis­sioner Pierre Moscovici said the fate of Greece and the euro would “largely be de­cided” Mon­day, adding that he be­lieved a deal could be reached.

The Euro­pean Cen­tral Bank will also meet to dis­cuss whether to raise the level of emer­gency fund­ing to Greek lenders again, as the coun­try’s bank­ing sys­tem faces a run by cus­tomers with­draw­ing their cash.

Gold fetched US$1,195.56 com­pared with US$1,202.66 late Fri­day. In other mar­kets: — Mum­bai rose 1.52 per­cent, or 414.04 points, to end at 27,730.21.

Axis Bank rose 3.62 per­cent to 572.00 ru­pees, while tele­com ma­jor Bharti Air­tel fell 2.25 per­cent to 424.20 ru­pees.

— Sin­ga­pore closed up 0.43 per­cent, or 14.17 points, to 3,315.13.

Real es­tate devel­oper Cap­i­taland gained 0.89 per­cent to SG$3.39 while Oversea-Chi­nese Bank­ing Cor­po­ra­tion rose 0.60 per­cent to SG$10.13.

— Jakarta ended down 0.52 per­cent, or 25.75 points, at 4,959.25.

Bank Dana­mon In­done­sia gained 0.34 per­cent to 4,370 ru­piah, while palm oil gi­ant As­tra Agro Les­tari dropped 2.65 per­cent to 22,050 ru­piah.

— Malaysia rose 0.64 per­cent, or 10.99 points, to 1,732.76.

May­bank added 0.43 per­cent to 9.34 ring­git, Te­naga Na­sional gained 1.87 per­cent to 13.10 while Top Glove lost 0.15 per­cent to 6.59 ring­git.

— Bangkok added 0.84 per­cent, or 12.60 points, to close at 1,504.06.

Coal pro­ducer Banpu slipped 0.96 per­cent to 25.75 baht while Air­ports of Thai­land rose 2.07 per­cent to 296.00 baht.

— Welling­ton fell 0.17 per­cent, or 9.73 points, to 5,772.04.

Fletcher Build­ing was down 0.84 per­cent at NZ$8.26 and Spark was un­changed at NZ$2.83.

— Manila rose 0.10 per­cent, or 7.97 points, to 7,609.14.

Uni­ver­sal Robina added 1.01 per­cent to 200.00 pe­sos, Manila Elec­tric ad­vanced 1.75 per­cent to 290.00 pe­sos and BDO Uni­bank ended 0.18 per­cent up at 110.00 pe­sos.

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