Protesters wave Greece flags in favor of the country Milos Bicanski, Getty Images

Asian Markets Up on Greece Hopes

Global equity markets are on a roll this week after Greece submitted bailout proposals that were welcomed by creditors in advance of the nation's June 30 deadline to repay its debt.

HONG KONG — Asian markets rose for a third straight day Wednesday, with Tokyo hitting a more than 18-year high, on confidence that Greece will finally hammer out a bailout reform deal with creditors and avert a default.

With expectations high that a last-minute agreement will be reached, the euro resumed its downward spiral against the dollar as traders turned their attention to a possible U.S. rate rise and European monetary easing.

Tokyo climbed 0.28%, or 58.61 points, to 20,868.03, its best finish since December 1996. Shanghai piled on 2.48%, or 113.66 points, to 4,690.15 — extending Tuesday's 2.19% gain — after plunging more than 13% last week. Analysts said the market is benefiting from the release of cash that had been tied up for a recent batch of initial public offerings. 

Hong Kong advanced 0.26%, or 71.51 points, to 27,404.97. Sydney was flat, adding 2.5 points to close at 5,686.8, and Seoul was 0.21%, or 4.33 points, higher at 2,085.53.

Global equity markets are on a roll this week after Greece submitted bailout proposals that were welcomed by creditors. Eurozone finance ministers will meet Wednesday to work on details of the new plan, before a full European Union summit is held the day after.

However, Greece's leaders — elected on an anti-austerity platform — cautioned they had to get any agreement through parliament, with some members of the ruling party claiming red lines on some issues such as tax had been crossed.

Greece must unlock billions of euros in aid before a June 30 deadline to repay an International Monetary Fund debt. It if fails it will default, with some warnings it could be ejected from the EU.

Markets appear to have taken the view that an agreement in Greece "is a foregone conclusion," Ric Spooner, chief market analyst in Sydney at CMC Markets, told Bloomberg News.

"Markets have now focused back on what they were focusing on prior to real concerns developing about Greece, and that is the adjustment for the potential for higher interest rates."

On Wall Street Tuesday the Dow added 0.13% and the S&P 500 nudged up 0.06%. The Nasdaq put on 0.12% to end at another record for a second day in a row.

Financial news from around the world

And in Europe, Athens rose more than 6%, adding to a 9% gain Monday.

There were also advances in Paris, Frankfurt, London, Lisbon, Rome and Madrid.

The euro was under pressure as investors' confidence in an eventual Greek debt deal allowed the focus to shift to the prospects of higher U.S. interest rates ahead.

The euro bought $1.1204 and 138.90 yen, compared with $1.1168 and 138.36 yen in New York, but was well down from $1.1396 and 139.87 yen at the start of the week.

The dollar was at 123.98 yen against 123.89 yen.

"Markets are pretty content with the idea that Greece and its creditors will do a deal before the June 30 deadline" on repaying massive debts, said Emma Lawson, senior currency strategist at National Australia Bank.

Oil prices rose on expectations of a decline in U.S. crude inventories. U.S. benchmark West Texas Intermediate for August delivery was up 15 cents at $61.16 a barrel and Brent climbed 14 cents to $64.59 in afternoon trade.

Gold fetched $1,178.00 compared with $1,183.00 late Monday.

In other markets

— Singapore closed up 0.35%, or 11.55 points, to 3,351.33. ... Agribusiness company Wilmar International fell 0.30% to Sg$3.30 while media group Singapore Press Holdings gained 0.48% to Sg$4.15.

— Mumbai fell 0.27%, or 74.70 points, to end at 27,729.67 points. ... Hindalco Industries fell 3.70% to 117.15 rupees, while Bharat Heavy Electricals rose 4.06% to 253.95 rupees.

— Jakarta ended up 0.32%, or 15.87 points, at 4,953.52. ... Private hospital group Siloam International Hospitals gained 5.15% to 14,300 rupiah, while Bank Central Asia Tbk slipped 0.37% to 13,625 rupiah.

— Malaysia gained 0.28%, or 4.82 points, to 1,731.68. ... Maybank went up 0.11% to 9.29 ringgit, Tenaga Nasional fell 2.14% to 12.78 ringgit while Genting Malaysia gained 0.95% to 4.26 ringgit.

— Bangkok gained 1.00%, or 15.03 points, to close at 1,518.26. ... Coal producer Banpu rose 1.96% to close at 26.00 baht while Bangkok Bank added 0.56% to 179.00 baht.

— Taipei was flat, edging up 6.17 points to 9,397.31. ... Taiwan Semiconductor Manufacturing Co closed 0.35% higher at Tw$145.0 while Hon Hai Precision Industry added 0.51% to Tw$97.6.

— Wellington ended marginally higher, adding 3.35 points to 5,775.48. ... Air New Zealand was up 0.99% at NZ$2.55 and Spark was unchanged at NZ$2.79.

— Manila closed 1.21%, or 91.77 points, higher at 7,643.33. ... Ayala Land was up 0.4% at 38 pesos, Philippine Long Distance Telephone gained 2.49% to 2,880 pesos and Metrobank jumped 2.14% to 92.95 pesos.

Copyright Agence France-Presse, 2015

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