Greece breathing a sigh of relief
Tokyo - Stocks up on Greek bailout deal, lessening jitters of country's future in eurozone
Published: Tue 14 Jul 2015, 2:49 PM
Global stock markets bounced higher on Monday after Greece and its European creditors agreed on a bailout deal, substantially reducing the uncertainty about Greece's future in the euro common currency.
France's CAC 40 added 1.9 per cent to 4,998.33 and Germany's DAX rose 1.3 per cent to 11,457.69. Britain's FTSE 100 edged up 0.8 per cent to 6,723.91.
"The euro-area summit managed to reach an agreement with Greece, with the latter pretty much backtracking on all its pre-election demands. This should support risk appetite," said Vasileios Gkionakis, global head of forex strategy at UniCredit Bank in London.
Japan's Nikkei 225 gained 1.6 per cent to 20,089.77. South Korea's Kospi climbed 1.5 per cent to 2,061.52. Hong Kong's Hang Seng rose 1.3 per cent to 25,224.01. The Shanghai Composite added 2.4 per cent to 3,970.39, bouncing back after a slew of government measures to halt a dramatic slide. Australia's S&P/ASX 200 was little changed, slipping 0.3 per cent to 5,473.20. Other regional markets were also higher, including Taiwan, Singapore, Thailand and Indonesia.
Oil prices tumbled on Monday as Iran and six world powers appeared to be closing in on a nuclear deal that would end sanctions on the country and let more Iranian oil on to world markets.
Brent crude for August fell $1.89 to a low of $56.84 a barrel before rallying back to around $57.70 by 1300GMT. US light crude, also known as West Texas Intermediate, was down 60¢ at $52.14 a barrel.
The euro initially spiked higher on the Greece bailout news then dropped to $1.1070 compared with $1.1157 on Friday. The dollar cost ¥123.36, up from ¥122.76.
US stocks advanced, with equities posting their best three-day rally since March.
All of the Standard & Poor's 500 Index's 10 main groups rose, led by consumer discretionary, financial and technology shares. Microsoft and Facebook gained 1.9 per cent. Bank of America Corp and JPMorgan Chase & Co increased more than 1.3 per cent. Netflix and Amazon.com surged more than 2.6 per cent.
The S&P 500 added 0.9 per cent to 2,096.15 at 9:51am in New York, after its best gain in two months on Friday. The Dow Jones Industrial Average climbed 181.73 points, or one per cent, to 17,942.14. The Nasdaq Composite Index gained 1.2 per cent after its biggest jump since January.
Indian equities climbed the most in three weeks. The Sensex jumped 1.1 per cent to 27,961.19 points at the close in Mumbai. The Stoxx Europe 600 Index climbed 1.8 per cent, and futures on the Standard & Poor's 500 Index erased a decline to rise 0.8 per cent.
Gulf bourses rose on Monday. Saudi Arabia's bourse, the most sensitive in the Gulf to oil prices because of its heavyweight petrochemical sector, was the weakest performer on Monday and edged up just 0.2 per cent.
The region's biggest gainer of the day was Dubai which, as a regional logistics and financial hub, could benefit the most from increased foreign trade and investment in Iran if the sanctions are lifted.
The emirate's index rose 0.9 per cent with most stocks positive. Heavyweights Emaar Properties and Dubai Islamic Bank added 2.1 and 1.5 per cent, respectively.
Neighbouring Abu Dhabi's bourse gained 0.6 per cent and Qatar edged up 0.4 per cent.
Kuwait rose 0.5 per cent to 6,203 points, Oman added 0.3 per cent to 6,479 points and Bahrain gained 0.3 per cent to 1,335 points. Egypt, however, fell 1.4 per cent as local investors resumed a sell-off, after a drop in trading volume in the previous session indicated that the market's rally was faltering. - Agencies
Greece in crisis, page 33