Loading...
See More

Asian markets up on Greek deal

Nov 27 2012 13:02 AFP

Related Articles

Budget optimism spurs Wall Street rally

Microsoft leads Wall St lower

China shares sink to a 7-week low

Fiscal cliff fears keep Wall Street subdued

Asian markets extend losses on US fears

Wary US investors stay defensive

 
Hong Kong - Asian markets rose Tuesday after the eurozone and the IMF agreed to unlock €43.7bn in loans to Greece and grant significant debt relief for decades to come.
 
Tokyo closed up 0.37%, or 34.36 points, at 9 423.30 on the news, Seoul rose 0.87%, or 16.69 points, to 1 925.20 while Sydney ended 0.74%, or 32.6 points, higher at 4 456.8.
 
In afternoon trade Hong Kong was up 0.33% but Chinese shares were down 0.98% on concerns over the strength of recovery in the domestic economy.
 
Shanghai's Composite Index was trading below the key 2 000 point level for the third time in a month, reflecting investor disappointment at a lack of government action to boost China's economy.
 
The Eurogroup of currency partners penned the Greek deal at its third late-night meeting in two weeks, agreeing to the release of the funds in December after months in which Greece was starved of bailout financing.
 
Greece, struggling to stay afloat despite a series of unpopular austerity measures, has been waiting impatiently for an injection of international loans for several weeks to avoid defaulting on its upcoming debt repayments.
 
Greece's public creditors agreed to take measures to bring down the country's debt-to-GDP ratio from an estimated 144% to 124% within eight years in exchange for the billions in loans.
 
After 13 hours of talks, finance ministers, the International Monetary Fund and the European Central Bank agreed that the money would be paid in four installments from December 13 through until the end of March.
 
Greek Prime Minister Antonis Samaras said the agreement represented a fresh start for his beleaguered country.
 
"Everything has gone well," Samaras told local media in Athens. "All Greeks have fought (for this decision) and tomorrow is a new day for every Greek person."
 
ECB President Mario Draghi said: "The decision will certainly reduce the uncertainty and strengthen confidence in Europe and in Greece."
 
Ahead of the announcement US markets were feeble in the first session after a slow Thanksgiving holiday week, with the jury still out over how strong the crucial Black Friday holiday sales were for retailers.
 
The Dow Jones Industrial Average finished down 42.31 points (0.33%) at 12 967.37.
 
The broad-market S&P 500 lost 2.86 (0.20%) to 1 406.29, while the Nasdaq Composite rose 9.93 (0.33%) to 2 976.78.
 
On currency markets the euro was stronger in Asian trade as investors breathed a sigh of relief over the Greece agreement.
 
The 17-nation currency bought $1.2984 and 106.69 yen in Tokyo trade after earlier briefly topping $1.30 for the first time in about a month.
 
That was up from $1.2971 and 106.38 yen in New York trade late Monday, although the euro eased slightly after the Greece announcement with investors taking profits and the focus turning towards a budgetary impasse in Washington.
 
Dealers are monitoring the so-called fiscal cliff of spending cuts and tax hikes due to come into effect on January 1.
 
Unless a bitterly divided US Congress reaches a new spending deal that date could see the United States thrown into recession.
 
The dollar gained to 82.22 yen from 81.98 yen.
 
On oil markets, New York's main contract, West Texas Intermediate (WTI) for January delivery, bounced 36 cents to $88.10 a barrel and Brent North Sea crude, also for January, jumped 22 cents to $111.14.
 
Gold was at $1 749.975 at 0615 GMT compared with $1 734.47 late Monday.
 
In other markets:
 
Taipei rose 0.31%, or 22.83 points, to 7 430.2.
 
Taiwan Semiconductor Manufacturing Co gained 1.05 percent to Tw$96.3 while leading smartphone maker HTC was 1.00 percent lower at Tw$248.5.

Wellington was flat, falling 2.42 points, at 4 009.61.
 
Telecom Corp was down 0.85% at NZ$2.33 and Fletcher Building rose 0.13% to NZ$7.98.
international markets  |  asian markets
NEXT ON FIN24X

US stocks surge on earnings

2014-10-24 07:49

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...