Asia fol­lows US, Europe higher on Greece hopes

The China Post - - BUSINESS INDEX & -

Most Asian mar­kets climbed Tues­day on grow­ing hopes that Greece and its cred­i­tors will fi­nally ham­mer out a debt re­form deal that will avoid a de­fault and pos­si­ble eu­ro­zone exit.

The gains tracked a record close for the Nas­daq on Wall Street while Euro­pean mar­kets also soared, in­clud­ing a nine per­cent surge in Athens. But the euro re­treated in Ja­panese trade as in­vestors await the next move.

In­vestors were also cheered by pre­lim­i­nary fig­ures sug­gest­ing a con­trac­tion in Chi­nese man­u­fac­tur­ing ac­tiv­ity may be eas­ing.

Tokyo soared 1.87 per­cent, or 381.23 points, to end at 20,809.42, break­ing through 20,700 for the first time since April 2000.

Syd­ney ad­vanced 1.32 per­cent, or 74.10 points, to 5,684.3 and Seoul closed up 1.27 per­cent, or 26.04 points, at 2,081.20.

Shang­hai, which plunged more than 13 per­cent last week be­fore a long week­end, ended 2.19 per­cent higher, adding 98.13 points to 4,576.49. Hong Kong rose 0.93 per­cent, or 252.61 points, to 27,333.46.

Eu­ro­zone lead­ers said they were con­fi­dent they would bring an end to the five-month cri­sis over Greece’s bailout re­form af­ter it sub­mit­ted pro­pos­als aimed at free­ing up much-needed cash to help it pay its bills.

Cash-strapped Greece is at risk of de­fault­ing on a 1.5-bil­lion-euro (US$1.7 bil­lion) IMF pay­ment on June 30 if it fails to reach a deal. That could lead to it crash­ing out of the eu­ro­zone and even the Euro­pean Union.

Af­ter an emer­gency sum­mit in Brus­sels on Mon­day, eu­ro­zone chiefs told their fi­nance min­is­ters to hold fresh talks on Wed­nes­day to thrash out de­tails of an ac­cord be­fore a sum­mit of the 28 EU lead­ers on Thurs­day.

EU sources told AFP that Greece had now met 90 per­cent of the con­di­tions set by its cred­i­tors, while Euro­pean Com­mis­sion chief Jean-Claude Juncker told a news con­fer­ence he was “con­vinced” a deal would be done.

How­ever, a Greek bank source said the Euro­pean Cen­tral Bank ( ECB) would make avail­able emer­gency liq­uid­ity funds for the coun­try’s lenders for a fourth time since Wed­nes­day.

The move, pro­vid­ing an un­spec­i­fied amount, comes as Greek savers con­tinue with­draw­ing cash in large vol­umes ow­ing to fears about a de­fault.

On Wall Street Mon­day the Nas­daq rose 0.72 per­cent to a new record, the Dow added 0.58 per­cent and the S&P 500 ad­vanced 0.61 per­cent.

Athens rock­eted 9.0 per­cent, while there were also big gains across Europe’s other ma­jor mar­kets, which were ex­tended in early trade Tues­day.

Buy­ing on Tues­day was also sup­ported by HSBC’s early June read­ing of China man­u­fac­tur­ing. Its pur­chas­ing man­agers’ in­dex came in at 49.6, just be­low the 50 mark that sep­a­rates con­trac­tion from growth but up from May’s 49.2. It also beat a forecast of 49.4 by econ­o­mists sur­veyed by Bloomberg.

The fig­ures fuel hopes the world’s num­ber two econ­omy may be about to pick up af­ter a se­ries of in­ter­est rate cuts in re­sponse to a sharp slow­down over the past sev­eral quar­ters.

Gold fetched US$1,184.38 com­pared with US$1,192.86 late Mon­day. In other mar­kets: — Welling­ton was flat, edg­ing up 0.08 points to 5,772.13.

Air New Zealand was up 1.00 per­cent at NZ$2.525 and Con­tact Energy slipped 1.35 per­cent to NZ$5.12.

— Manila closed 0.76 per­cent lower, giv­ing up 57.58 points to 7,551.56.

— Mum­bai inched marginally higher by 0.27 per­cent, or 74.16 points, to end 27,804.37 points.

Coal In­dia gained 3.85 per­cent to 415.15 ru­pees, while In­fosys fell 2.27 per­cent to 1,001.15 ru­pees.

— Malaysia’s key in­dex lost 0.34 per­cent, or 5.90 points to 1,726.86.

May­bank dropped 0.64 per­cent to 9.28 ring­git, Te­naga Na­sional fell 0.31 per­cent to 13.06 ring­git while Gent­ing Malaysia gained 0.24 per­cent to 4.22 ring­git.

— Bangkok slipped 0.06 per- cent, or 0.83 per­cent, to close at 1,503.23

Coal pro­ducer Banpu lost 0.97 per­cent, or 0.25 baht, to 25.50, while Bangkok Bank edged down 0.28 per­cent, or 0.50 baht, to close at 178.00.

— Sin­ga­pore closed up 0.74 per­cent, or 24.65 points, to 3,339.78.

United Over­seas Bank gained 1.04 per­cent to SG$23.27 while oil rig maker Kep­pel Corp. fell 0.12 per­cent to SG$8.40.

— Jakarta ended down 0.44 per­cent, or 21.60 points, at 4,937.65.

Pri­vate hos­pi­tal group Siloam In­ter­na­tional Hos­pi­tals gained 1.87 per­cent to 13,600 ru­piah, while auto com­pany As­tra In­ter­na­tional slipped 2.50 per­cent to 6,825 ru­piah.

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