Most Asia markets rally on Greece hopes

HONG KONG: Most Asian markets rose for a second day yesterday after Greece submitted new debt reform plans and fears over a Chinese rout subsided as Shanghai stocks surged again.

The euro edged higher as investors bet that Athens’ new proposals will be enough to placate its creditors and get the green light at a European Union summit at the weekend.

Shanghai rallied 4.54%, or 168.47 points, to 3,877.80 after surging almost 6% Thursday as Chinese authorities beefed up measures to staunch a sell-off that has wiped trillions off mainland markets. The index ended a roller-coaster week 5.18% higher.

The gains came after China moved to stop “major” shareholders --those holding at least a five percent stake --from selling their stocks and launched a probe into short-selling in a bid to calm markets.

Short-selling is the selling of stock a trader does not own, in anticipation of a future fall in prices.

Hong Kong rose 2.08%, or 508.49 points, to 24,901.28, adding to a near 4% advance in the previous session.

Sydney added 0.38%, or 21.0 points, to 5,492.0 and Seoul put on 0.17%, or 3.36 points, to 2,031.17.

But Tokyo lost 0.38%, or 75.67 points, to end at 19,779.83, giving up early gains.

Traders regained some risk sentiment yesterday, at the end of a week of tumult caused by a Greek referendum against austerity and a precipitous fall in China that fuelled concerns about the world’s second biggest economy.

Hopes that Greece will remain in the euro-zone were boosted after the government laid out details of a new bailout plan offering a pensions overhaul and tax hikes in return for debt relief and a rescue loan.

The package closely resembled an offer put forward by creditors before talks broke down last month.

However, there was no immediate word on whether it would be enough to put an end to the five-month crisis.

Euro-zone officials will now study details of the package today, a day before the summit.

Currency markets welcomed the news, pushing the euro up to $1.1111 and 135.72 yen from $1.1035 and 133.88 yen in New York late Thursday. The dollar rose to 122.17 yen from 121.34 yen. Oil was also up. US benchmark West Texas Intermediate for August delivery climbed 91 cents to $53.69 and Brent crude for August advanced 97 cents to $59.58 a barrel in afternoon trade.

Gold f etched $1,163.30 compared with $1,162.39 late Thursday.