View the article online at http://citywire.co.uk/money/article/a596932
Asia jumps on Greece’s pro-euro election results
Investors cheer the victory of pro-bailout parties easing concern over Greece exiting the euro.
Asian shares jumped on Monday after Greece's election delivered a slim parliamentary majority to pro-bailout parties - New Democracy and PASOK - easing concern over the country exiting the euro.
The MSCI Asia Pacific Index climbed 1.5% to 116 as of 11:37 a.m. in Tokyo. Japan’s Nikkei 225 Stock Average gained 1.8% and South Korea’s Kospi Index advanced 2.1%. Australia’s S&P/ASX 200 Index rose 1.4%. Hong Kong’s Hang Seng Index increased 1.6%, while China’s Shanghai Composite Index added 0.6%.
New Democracy and PASOK, which broadly support the €130 billion EU/IMF bailout, will begin forging a government on Monday. The New Democracy party has signalled it would stick to the outlines of a bailout agreement that Greece struck with the eurozone in February.
Asia Pacific governments welcomed Greek election results and urged the quick formation a new government. A statement from the Group of Seven major industrialised nations said it was in "all our interests" for Greece to remain in the eurozone while respecting its international bailout commitments.
Shares of the companies that do business in Europe advanced. Canon Inc., a camera maker that gets 31% of sales in Europe, rose 1.7% in Tokyo. Lynas Corp. surged 9.1% in Sydney after Malaysia upheld the Australian miner’s license to run a rare-earths refining facility in the face of protest.
Hong Kong Exchanges & Clearing Ltd., the world’s second-largest bourse operator, slipped 2.6% after agreeing to pay $2.18 billion for the London Metal Exchange.
The victory of pro-bailout parties also pushed the euro up around 0.4% at about $1.2685 - a one-month high. US stock index futures and riskier commodities such as crude oil and copper also jumped, while gold declined after a rally last week. US crude rose 1% to around $84.90 a barrel, Brent crude gained nearly $1 to above $98.50 and copper was 0.6% higher around $7,556 a metric tonne. Gold was down 0.3% at around $1,623 an ounce.
News sponsored by:
Here at BlackRock, we help investors make more out of commodities with a range of innovative, flexible and resilient investment strategies.
From Brazil and Mexico, to Vietnam and Nigeria, the rapidly developing economies of Latin American and frontier markets, which are some of the smaller, less developed economies in the world, provides investors with a wealth of potential opportunities. Discover why BlackRock's investment trust range is well placed to help you make more of these exciting regions.
In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.
More about this:
Tools from Citywire Money
From the Forums
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add email@example.com to your safe senders list so we don't get junked.
by Gavin Lumsden on Oct 23, 2016 at 00:01