Asia up on Greece hopes, ECB eas­ing hits euro

The China Post - - BUSINESS INDEX & -

Asian mar­kets rose for a third straight day Wed­nes­day, with Tokyo hit­ting a more than 18-year high, on con­fi­dence Greece will fi­nally ham­mer out a bailout re­form deal with cred­i­tors and avert a de­fault.

With ex­pec­ta­tions high that a last­minute agree­ment will be reached, the euro re­sumed its down­ward spi­ral against the dol­lar as traders turned their at­ten­tion to a pos­si­ble U.S. rate rise and Euro­pean mon­e­tary eas­ing.

Tokyo climbed 0.28 per­cent, or 58.61 points, to 20,868.03, its best fin­ish since De­cem­ber 1996.

Eq­ui­ties in Hong Kong rose 0.26 per­cent, while Shang­hai ex­tended the pre­vi­ous day’s gains on im­proved liq­uid­ity. The bench­mark Hang Seng In­dex added 71.51 points to 27,404.97 on turnover of HK$117.04 bil­lion (US$15.10 bil­lion).

In Hong Kong on Wed­nes­day one of the big win­ners was Ten­cent, which jumped 3.54 per­cent to HK$163.70 on news it will en­ter a co-op­er­a­tion agree­ment on servers and soft­ware with main­land firm Dr Peng Tele­com.

HSBC eased 0.07 per­cent to HK$ 73.65, Cathay Pa­cific was 0.10 per­cent higher at HK$20.00 and shoe­maker Belle In­ter­na­tional jumped 1.51 per­cent to HK$9.42.

In main­land China the bench­mark Shang­hai Com­pos­ite In­dex jumped 2.48 per­cent, or 113.66 points, to 4,690.15 on turnover of 815.1 bil­lion yuan (US$133.3 bil­lion).

The Shen­zhen Com­pos­ite In­dex, which tracks stocks on China’s sec­ond ex­change, rose 1.73 per­cent, or 48.09 points, to 2,822.73 on turnover of 675.2 bil­lion yuan.

Syd­ney was flat, adding 2.5 points to close at 5,686.8, and Seoul was 0.21 per­cent, or 4.33 points, higher at 2,085.53.

Global eq­uity mar­kets are on a roll this week af­ter Greece at the week­end sub­mit­ted bailout pro­pos­als that were wel­comed by cred­i­tors.

Eu­ro­zone fi­nance min­is­ters will meet Wed­nes­day to work on de­tails of the new plan, be­fore a full Euro­pean Union sum­mit is held the day af­ter.

How­ever,

Greece’s

lead­ers — elected on an anti-aus­ter­ity plat­form — cau­tioned they had to get any agree­ment through par­lia­ment, with some mem­bers of the rul­ing party claim­ing red lines on some is­sues such as tax had been crossed.

Greece must un­lock bil­lions of eu­ros in aid be­fore a June 30 dead­line to re­pay an In­ter­na­tional Mon­e­tary Fund debt. It if fails it will de­fault, with some warn­ings it could be ejected from the EU.

Mar­kets ap­pear to have taken the view that an agree­ment in Greece “is a fore­gone con­clu­sion,” Ric Spooner, chief mar­ket an­a­lyst in Syd­ney at CMC Mar­kets, told Bloomberg News.

On Wall Street Tues­day the Dow added 0.13 per­cent and the S&P 500 nudged up 0.06 per­cent. The Nas- daq put on 0.12 per­cent to end at another record for a sec­ond day in a row.

And in Europe, Athens rose more than six per­cent, adding to a nine per­cent gain Mon­day.

There were also ad­vances in Paris, Frank­furt, Lon­don, Lis­bon, Rome and Madrid.

Gold fetched US$1,178.00 com­pared with US$1,183.00 late Mon­day. In other mar­kets: — Sin­ga­pore closed up 0.35 per­cent, or 11.55 points, to 3,351.33.

Agribusi­ness com­pany Wil­mar In­ter­na­tional fell 0.30 per­cent to SG$3.30 while media group Sin­ga­pore Press Hold­ings gained 0.48 per­cent to SG$4.15.

— Mum­bai fell 0.27 per­cent, or 74.70 points, to end at 27,729.67 points.

Hin­dalco In­dus­tries fell 3.70 per­cent to 117.15 ru­pees, while Bharat Heavy Elec­tri­cals rose 4.06 per­cent to 253.95 ru­pees.

— Jakarta ended up 0.32 per­cent, or 15.87 points, at 4,953.52.

Pri­vate hos­pi­tal group Siloam In­ter­na­tional Hos­pi­tals gained 5.15 per­cent to 14,300 ru­piah, while Bank Cen­tral Asia Tbk slipped 0.37 per­cent to 13,625 ru­piah.

— Malaysia gained 0.28 per­cent, or 4.82 points, to 1,731.68.

May­bank went up 0.11 per­cent to 9.29 ring­git, Te­naga Na­sional fell 2.14 per­cent to 12.78 ring­git while Gent­ing Malaysia gained 0.95 per- cent to 4.26 ring­git.

— Bangkok gained 1.00 per­cent, or 15.03 points, to close at 1,518.26.

Coal pro­ducer Banpu rose 1.96 per­cent to close at 26.00 baht while Bangkok Bank added 0.56 per­cent to 179.00 baht.

— Welling­ton ended marginally higher, adding 3.35 points to 5,775.48.

Air New Zealand was up 0.99 per­cent at NZ$2.55 and Spark was un­changed at NZ$2.79.

— Manila closed 1.21 per­cent, or 91.77 points, higher at 7,643.33.

Ayala Land was up 0.4 per­cent at 38 pe­sos, Philip­pine Long Dis­tance Tele­phone gained 2.49 per­cent to 2,880 pe­sos and Metrobank jumped 2.14 per­cent to 92.95 pe­sos.

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