Asian shares advance on Greek optimism

29-Jun-2011 Intellasia | MarketWatch | 4:25 PM Print This Post

Asian equity markets gained sharply in early trading on Wednesday, amid growing hope that Greece will avoid an imminent default.

Japan’s Nikkei Stock Average (TYO:JP:NIK) advanced 1 percent, South Korea’s Kospi index (KRX:KR:0100) climbed 1.5 percent and Australia’s S&P/ASX 200 index (ASX:AU:XJO) jumped 1 percent.

The advance followed a strong performance in the US on Tuesday as “investor optimism grew that the Greek austerity package would be passed by the government,” said strategists at IG Markets.

The Dow jumped 145-points, its biggest one-day move since April 20, on strength in Energy and consumer-discretionary shares and optimism about Greece’s debt crisis. Laura Mandaro has details.

Greek lawmakers are expected to vote later Wednesday on a package of austerity and privatization measures. If it passes, parliament will then vote on implementation measures.

The European Union and the International Monetary Fund have made it a condition that further financial aid to Greece depends on parliament passing the measures. Read more on Greece.

Meanwhile, gains for oil helped the energy sector head higher in Asia, with JX Holdings Inc (TYO:JP:5020) (OTN:JXHGF) up 1.4 percent in Tokyo, and Woodside Petroluem Ltd. (ASX:AU:WPL) (OTN:WOPEF) up 1.6 percent in Sydney.

Resource-sector firms were also advancing along with commodity prices, with Newcrest Minding Ltd. (ASX:AU:NCM) (OTN:NCMGF) up 1.3 percent and Sumitomo Metal Mining Co. (TYO:JP:5713) (OTN:STMNF) higher by 2.6 percent.

Auto makers climbed in Japan, after industrial production jumped 5.7 percent in May, compared to a 1.6 percent increase in April, led by a rebound in autos. Read more on industrial production. -By Sarah Turner


Category: Stocks

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