Share

Asia markets follow US, Europe higher on Greece hopes

Hong Kong - Most Asian markets climbed on Tuesday and the euro stood its ground on growing hopes 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 on Wall Street while European markets soared, including a nine percent surge in Athens.

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

Tokyo jumped 1.43%, Sydney rallied 1.13% and Seoul was up 1.28% while Hong Kong was 0.20% higher.

Shanghai, which plunged more than six percent on Friday before a long weekend, edged up 0.38%.

Eurozone leaders said they were confident they would bring an end to the five-month crisis over Greece's bailout reform after Athens 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 €1.5bn International Monetary Fund payment on June 30 if it fails to reach a deal. That could lead to the country crashing out of the eurozone and even the European Union.

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

EU sources told AFP that Greece had now met 90% 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.

China data boost

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

And Athens rocketed 9.0%, the CAC 40 in Paris jumped 3.81%, Frankfurt's DAX 30 also gained 3.81%. London's benchmark FTSE 100 rose 1.72%, the Milan exchange added 3.46% and Madrid climbed 3.87%.

The euro bought $1.1330 and ¥139.93 in Tokyo trade, compared with $1.1340 and ¥139.91 in New York late on Monday.

"Hopes are likely to heighten for a positive outcome over the Greek issue before a European Union summit later this week after Greece signalled readiness to compromise," Yujiro Goto, currency strategist at Nomura Holdings, told Bloomberg News.

The dollar was at ¥123.38 against ¥123.38 in New York but well up from ¥122.73 in Tokyo earlier on Monday.

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 feed hopes the world's number two economy may be about to pick up after a series of interest rate cuts that come in response to a sharp slowdown over the past several quarters.

On oil markets US benchmark West Texas Intermediate fell 19 cents to $60.19 a barrel and Brent crude dropped 10c to $63.24.

Gold fetched $1 187.24 compared with $1 192.86 late on Monday.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders