A man cycles past an electronic stock indicator in Tokyo on Wednesday, Feb. 4, 2015. Asia extended a global stocks rally Wednesday while the euro held on to healthy gains as hopes grow that Greece will be able to hammer out a debt deal with its European partners. AP PHOTO/SHIZUO KAMBAYASHI
HONG KONG–Asia extended a global stocks rally Wednesday while the euro held on to healthy gains as hopes grow that Greece will be able to hammer out a debt deal with its European partners.
Traders followed the lead from across Europe and the United States after Greece’s new leadership impressed with their charm offensive aimed at getting backing for a renegotiation of its bailout.
Oil prices were slightly lower after surging to their highest levels since the turn of the year on news of a cut in the number of rigs drilling and energy giants slashing budgets.
Tokyo surged 1.98 percent, or 342.89 points, to 17,678.74 and Sydney rose for a 10th successive session, adding 1.23 percent, or 69.9 points, to end at 5,777.34–a day after the central bank cut its official cash rate to a record low Tuesday.
Seoul ended 0.55 percent higher, putting on 10.83 points to 1,962.79, while Hong Kong was 0.51 percent higher, adding 124.98 points to 24,679.76.
However, profit-taking hit Shanghai, with the benchmark index closing 0.96 percent, or 30.78 points, lower at 3,174.13. It jumped 2.45 two percent Tuesday.
Anti-austerity Greek Prime Minister Alexis Tsipras and Finance Minister Yanis Varoufakis have been touring European countries ramping up support for their plan to restructure their debt repayments.
Varoufakis is pushing the idea of debt swaps that would avoid the need for creditors to accept losses on the country’s 315-billion-euro ($361-billion) foreign debt, while easing the monthly financing burden on Athens.
While being given a sympathetic ear so far the leadership’s toughest test will come later this week when it must convince European paymaster Germany of its plans.
Oil prices rally
However, reassurances by Varoufakis and Tsipras to creditors and allies that a default–and possible Greek exit from the single currency area–is not on the cards boosted markets, with Athens surging more than 11 percent.
There were also healthy gains in London, Paris and Frankfurt, which ended at a record high, while in New York the Dow climbed 1.76 percent, the S&P 500 put on 1.44 percent higher and the Nasdaq gained 1.09 percent.
The surge in confidence filtered through to currency markets, where the euro rocketed one point to as high as $1.1512 before settling back.
In Tokyo trade the single currency bought $1.1470 and 135.00 yen, compared with $1.1479 and 134.96 yen late in New York and sharply up from the $1.13 and 132 yen levels seen in Tokyo earlier Tuesday.
The dollar was at 117.50 yen Wednesday compared with 117.57 yen in US trade.
“The driver appears to be increased market optimism that a solution may be found and indeed is beginning to be worked out between Greece and its creditors,” National Australia Bank said in a note.
But it warned “there is a long way to go yet to cement a deal on Greece and doubtless there will be further market ructions.”
Oil prices retreated after shooting up over the past few days on hopes of rebounding global energy demand and reduced crude production.
US benchmark West Texas Intermediate for March delivery fell 74 cents to $52.31 while Brent crude for March lost 13 cents to $57.78.
Earlier Tuesday Brent had struck $57.23 and WTI touched $51.56.
“With oil having rallied for four days and reached a one-month high, there’s a growing sense that it has bottomed out,” Hiroichi Nishi, an equities manager at SMBC Nikko Securities Inc. in Tokyo, said by phone. “Chances today are quite high for a rebound.”
Gold fetched $1,267.80 an ounce, against $1,281.71 on Tuesday.
In other markets:
— Mumbai declined 0.40 percent, or 117.03 points, to end at 28,883.11 points.
Axis Bank fell 4.64 percent to 559.30 rupees, while aluminium major Hindalco rose 3.89 percent to 152.05 rupees.
— Kuala Lumpur gained 1.22 percent, or 21.76 points, to close at 1,803.02.
AMMB Holdings went up 0.16 percent to 6.29 ringgit, Tenaga Nasional increased 0.97 percent to 14.64 while YTL Corporation dropped 1.14 percent to 1.74 ringgit.
— Bangkok slipped 0.17 percent, or 2.73 points, to close at 1,599.81.
Coal producer Banpu rose 2.94 percent, or 0.75 baht, to close at 26.25 while Bangkok Bank lost 0.79 percent, or 1.50 baht, to 189.50 baht.
— Jakarta ended up 0.45 percent, or 23.57 points, at 5,315.28.
Retailer Matahari Department Store slipped 2.08 percent to 15,275 rupiah, while mobile phone provider Indosat gained 2.69 percent to 4,005 rupiah.
— Singapore finished up 0.28 percent, or 9.55 points, to 3,417.57.
Singapore Airlines fell 1.14 percent to Sg$12.11 while Singapore Telecom finished up 0.49 percent at Sg$4.09.
— Taipei rose 0.69 percent, or 65.19 points, to 9,513.92.
Taiwan Semiconductor Manufacturing Co. gained 1.04 percent to Tw$146.0 while Hon Hai Precision Industry was 0.11 percent higher at Tw$87.5.
— Wellington ended marginally higher, edging up 3.37 points to 5,785.32.
Fletcher Building was 0.59 percent higher at NZ$8.52 and Chorus gained 2.58 percent to NZ$2.78.
— Manila jumped 1.35 percent, or 102.91 points, to 7,716.06.
Philippine Long Distance Telephone rose 3.29 percent to 3,078 pesos, Universal Robina gained 0.29 percent to 205.60 while Megaworld was up 0.58 percent to 5.21 pesos.
Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of INQUIRER.net. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City,Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
seo tools
No comments:
Post a Comment