Asian stock markets jumped Monday after Greece and its European creditors agreed on a bailout deal, substantially reducing uncertainty about Greece's future in the euro common currency.
Asian stock markets jumped Monday after Greece and its European creditors agreed on a bailout deal, substantially reducing uncertainty about Greece’s future in the euro common currency.
KEEPING SCORE: Japan’s Nikkei 225 gained 1.6 percent to 20,089.77. South Korea’s Kospi climbed 1.5 percent to 2,061.52. Hong Kong’s Hang Seng rose 1.1 percent to 25,176.62. The Shanghai Composite added 2.4 percent to 3,970.39, steadying after a slew of government measures to halt a dramatic slide. Australia’s S&P/ASX 200 was little changed, slipping 0.3 percent to 5,473.20. Other regional markets were also higher, including Taiwan, Singapore, Thailand and Indonesia.
GREECE FACTOR: A summit of European leaders reached a tentative agreement with Greece, removing an immediate threat that the country could collapse financially and leave the euro. Nine hours after a self-imposed deadline passed, the leaders announced the breakthrough early Monday. If the talks had failed, Greece could have faced bankruptcy and a possible exit from the euro. The deal needs approval from Greece’s parliament.
ANALYST’S TAKE: “From the perspective of those seeking reform in Greece, current bank closures appear to represent an opportunity to maximize pressure and force immediate action by the Greek parliament,” said Ric Spooner, chief analyst at CMC Markets in Sydney.
WALL STREET: The Standard & Poor’s 500 index rose 25.31 points, or 1.2 percent, to close Friday at 2,076.62. The gain pushed the S&P 500 back into positive territory for the year. The Dow Jones industrial average climbed 211.79 points, or 1.2 percent, to 17,760.41. The Nasdaq composite gained 75.30 points, or 1.5 percent, to 4,997.70.
ENERGY: Benchmark U.S. crude was down 97 cents to $51.77 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, a benchmark for international oils, lost 96 cents to $57.77 a barrel in London. Oil prices have dropped as expectations grow that a provisional agreement may be reached soon on the Iran nuclear talks to curb the country’s atomic program in return for tens of billions of dollars in sanctions relief.
CURRENCIES: The euro dropped to $1.1107 from $1.1157 on Friday. The dollar cost 123.26 yen, up from 122.76 yen.