Asia stocks rise after Greece austerity vote
Investors in Asia greeted the Greek vote with relief. But Greeks, who have been struggling to cope with a 20 per cent unemployment rate and five years of recession, took to the streets to protest the measures. Riots and fires continued all weekend.
Asian stock markets rose Monday, just hours after Greece's parliament approved a new set of austerity measures that were required by international lenders in exchange for an emergency bailout.
Japan's Nikkei 225 index rose 0.2 per cent to 8,963.48. Hong Kong's Hang Seng gained 0.3 per cent to 20,837.46. South Korea's Kospi added 0.5 per cent to 2,002.72.
Drastic cuts in civil service jobs, minimum wages and pensions were among the measures approved by lawmakers in Athens in order to collect a second, urgently needed rescue loan.
Without the $170 billion (euro130 billion) financial lifeline, Greece will default on a mountain of national debt next month and likely be pressed into a disruptive exit from the euro common currency.
Investors in Asia greeted the Greek vote with relief. But Greeks, who have been struggling to cope with a 20 per cent unemployment rate and five years of recession, took to the streets to protest the measures. Riots and fires continued all weekend.
Attention now shifts to a meeting Wednesday of European finance ministers, who will discuss additional bailout funds for Greece.
Analysts at Credit Agricole CIB in Hong Kong said in an email that the parliament vote "did not come without major cost in the form of escalating protests and violence within Greece."
"At least for today the market tone will be a positive one as attention shifts to a meeting of EU finance ministers on Wednesday."
Benchmark crude for March delivery was up 91 cents at $99.58 in electronic trading on the New York Mercantile Exchange. The contract fell $1.17 to settle at $98.67 on the Nymex on Friday.
In currency trading, the euro jumped to $1.3235 from $1.3170 late Friday in New York. The dollar rose to 77.62 yen from 77.60 Japanese yen.
