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Asia stocks rise on relief over Greece deal; Nikkei up 0.82%

Published 03/12/2012, 10:08 PM
Updated 03/12/2012, 10:11 PM
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Investing.com - Asian stocks rose on Tuesday as investors bought on relief that Greece's recent debt restructuring with private creditors will ease the credit crisis in Europe, a key Asian export market.

During Asian trading on Monday, Hong Kong's Hang Seng Index was up 0.91%, Australia's S&P/ASX200 was up 1.06%, while Japan’s Nikkei 225 Index was up 0.82%.

Greece and its private creditors recently agreed on a debt restructuring, and even though technically the debt swap constitutes a default, the deal does open the way for European policymakers to free up a EUR130 billion rescue fund for the crisis-wracked Mediterranean country.

Fears that Portugal may need assistance next have already popped up in European debt markets right as Greece appears to be calming down, but calmer winds over Europe in general brought out the buyers in Asian equities markets.

Meanwhile, the Bank of Japan is set to meet this week to discuss monetary policy and no changes are expected, which was bullish for stocks.

The U.S. Federal Reserve is expected to leave its loose monetary policies unchanged as well.

In Hong Kong, the top gainers included Tencent, up 3.45%, China Life, up 1.84%, and New World Development, up 1.79%.

In Australia, the top gainers included Qantas Airways, up 3.93%, Bluescope Steel, up 3.80%, and QBE Insurance Group, up 3.72%.

European stock futures indicated a higher opening.

France's CAC 40 futures pointed to a gain of 0.16%, while Germany's DAX 30 futures signaled a gain of 0.27%. Meanwhile, in the U.K., the FTSE 100 futures indicated a gain of 0.25%.

Dow Jones Industrial Average futures were up 0.19% while the S&P 500 futures were up 0.18%.

On Tuesday, aside from expected Bank of Japan and Federal Reserve statements, Australia is to produce official data on home loans, a leading gauge of demand in the housing market, as well as a report on business confidence, while New Zealand is to publish industry data on house price inflation.

Meanwhile, eurozone finance ministers are scheduled to hold talks throughout the day to discuss the outlook of the continent's debt crisis.

The U.S. is to release government data on retail sales, the foremost indicator of consumer spending, which accounts for the bulk of overall economic output in the world's largest economy.

The country is also to produce official data on business inventories, a signal of future business spending.





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