Asia: Equities gain after Greek vote

Date: Monday 18 Jun 2012

Stock markets in Asia carved out strong gains on Monday as Greece narrowly voted for the country's pro bailout party.

Greece’s New Democracy party, which won crucial parliamentary elections on Sunday, has previously backed Greece's two bailouts by the European Union and International Monetary Fund. The party said it is willing to honour austerity measures set out by international lenders in order to receive its next bailout.

In contrast anti-austerity party Syriza had vowed to tear up Greece’s bailout agreements and Greece would have been forced out of the euro.

The benchmark Nikkei 225 index closed up 151 points at 8,721 in Tokyo, a one month high. The Hang Seng rallied 193 points at 19,427 in Hong Kong.

Relief, at least temporarily, that Greece will remain within the Eurozone fuelled demand for Europe exposed exporters. Sony was up 4.5%, Toyota gained 2% while Mazda jumped 6%. Sharp bounced 5.6% after Deutsche Securities upgraded the stock to "hold" from "sell".

Technology shares were also sought after with TDK gaining 3.6% while Terumo piled on nearly 5%.

Financials powered ahead across Asia in the post Greek election rally. HSBC rose 1.8% while China Life firmed 2.9% in Hong Kong. Nomura climbed 2.6% and Daiwa Securities beefed up 2% in Tokyo.





CJ

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