Share

Asia markets mostly up on Greece hopes

Hong Kong - Asian markets mostly rose on Monday after Greece presented to its creditors new proposals on reforming its bailout, fuelling hopes of an end to a five-month deadlock, averting a default and possible exit from the eurozone.

The euro also advanced after Brussels said it had received the plans a day before a emergency European summit Monday, with Greek Prime Minister Alexis Tsipras' office calling it a "mutually beneficial deal".

Tokyo added 0.83%, Hong Kong gained 0.54%, Seoul was 0.40% higher, Singapore put on 0.63% and Taipei rallied 1.28%. Sydney fell 0.40 percent, however.

Shanghai was closed for a public holiday.

While it is not clear what concessions have been offered by either side, Martin Selmayr, the head of European Commission President Jean-Claude Juncker's cabinet, said the Athens proposal offered "a good basis for progress".

However, he underscored the tumult surrounding the deal by describing the negotiations as a "forceps delivery".
The plans were submitted after Tsipras held talks with German Chancellor Angela Merkel, French President Francois Hollande and Juncker.

Analysts said the move was cheered in Asian trading rooms. "Originally there wasn't going to be one, so the fact that there's a new proposal on the table appears to be seen favourably," Shoji Hirakawa, chief equity strategist at Okasan Securities Co. in Tokyo, told Bloomberg News.

The euro strengthened, buying $1.1362 and ¥139.55, compared with $1.1349 and ¥139.23 in New York late on Friday.

The dollar was at ¥122.65 against ¥122.69 in US trade.

The heads of the 19 eurozone countries will hold an emergency summit in Brussels later Monday under pressure to prevent Greece from defaulting on its debt.

If the two sides are unable to agree a deal, Greece will likely default on an IMF debt payment of around €1.5bn due on June 30, leading to the possibility of it crashing out of the eurozone.

Greece said its new proposals were aimed at reaching a "definitive solution" to end the standoff between Athens and its creditors.

"It is difficult to forecast how the summit will turn out but it seems there is no small deal of optimism in markets that they will come to an agreement in the end," Shinya Harui, a Europe-focused financial markets analyst at Nomura Securities in Tokyo, told AFP.

The European Central Bank will also meet to discuss whether to raise the level of emergency funding to Greek lenders again, as the country's banking system faces a run by customers withdrawing their cash.

Oil prices slipped. US benchmark West Texas Intermediate for July delivery fell 15 cents to $59.46 while Brent crude for August eased 19c to $62.83.

Gold fetched $1 199.78 compared with $1 202.66 late on Friday.

 

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
19.02
-0.6%
Rand - Pound
24.01
-0.5%
Rand - Euro
20.53
-0.3%
Rand - Aus dollar
12.35
-0.0%
Rand - Yen
0.13
-0.6%
Platinum
900.40
+0.4%
Palladium
998.40
-0.3%
Gold
2,210.05
+0.7%
Silver
24.65
+0.0%
Brent Crude
86.09
-0.2%
Top 40
68,079
+0.6%
All Share
74,269
+0.5%
Resource 10
56,875
+2.2%
Industrial 25
103,593
+0.3%
Financial 15
16,463
-0.4%
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