Asia stocks up on Greece, Shanghai sinks

HONG KONG: Asian markets tracked global stocks higher yesterday on hopes for a deal to keep Greece in the euro-zone as the country prepares for a crucial weekend referendum, but Shanghai tumbled again despite authorities relaxing trading rules to temper recent volatility.

Regional traders were broadly upbeat on the prospects for Greece despite Tuesday’s default as the government offered fresh concessions to reach a compromise.

Buying was also supported by a healthy pick-up on Wall Street that came after another strong batch of US data suggesting the world’s top economy is on the recovery path.

Tokyo added 0.95%, helped by a weaker yen. The Nikkei added 193.18 points to 20,522.50.

Sydney put on 1.53%, or 84.14 points, to close at 5,599.80 and Seoul gained 0.45%, or 9.44 points, to 2,107.33. Hong Kong closed 0.12% higher, adding 32.29 points to 26,282.32.

Shanghai suffered another afternoon sell-off to plunge 6.4% at one point, extending Wednesday’s more than five percent slump as investors brushed off the latest measures to temper a sell-off that has put the index into bear territory.

However, the benchmark recovered marginally to end 3.48%, or 140.93 points, down at 3,912.77 -- it has now lost a quarter of its value since hitting a June 12 peak.

While European leaders dismissed Wednesday an offer from Greece for a new bailout --which had been presented just before it defaulted --traders are confident the crisis will eventually be resolved.

Frustrated euro-zone finance ministers agreed to wait until after Sunday’s bailout referendum before holding any more talks, saying there were “no grounds” for further discussions.

The poll has been cast by Europe’s leaders as effectively an in/ out vote on the country’s future on the euro.

US and European shares advanced Wednesday. On Wall Street the Dow rose 0.79%, the S&P 500 was up 0.69% and the Nasdaq put on 0.53%.

The dollar was at 123.54 yen, up from 123.15 yen in New York and much stronger than the 122.48 yen in Tokyo earlier Wednesday.

The euro fetched $1.1056 and 136.59 yen, against $1.1053 and 136.12 yen in New York.

On oil markets US benchmark West Texas Intermediate for August delivery was up 13 cents at $57.09 while Brent was 36 cents higher at $62.37. Gold fetched $1,165.05 compared with $1,172.54 late Wednesday. Chinese markets again saw sharp swings as they suffer a sharp correction after surging more than 150% over the past year.