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| Version 1 | Version 2 |
|---|---|
| Shares in Asian markets rise on Greek confidence vote | Shares in Asian markets rise on Greek confidence vote |
| (about 2 hours later) | |
| Asian shares opened higher on Wednesday on optimism that Greece will not default on its debts, after the government won a crucial confidence vote. | Asian shares opened higher on Wednesday on optimism that Greece will not default on its debts, after the government won a crucial confidence vote. |
| Japan's Nikkei 225 index was up more than 1%, as South Korea's KOSPI and Australia's S&P/ASX 200 also gained 1%. | Japan's Nikkei 225 index was up more than 1%, as South Korea's KOSPI and Australia's S&P/ASX 200 also gained 1%. |
| However, the euro, Europe's shared currency, fell against the US dollar on fears the debt crisis was not over. | However, the euro, Europe's shared currency, fell against the US dollar on fears the debt crisis was not over. |
| And some analysts warned the positive sentiment may be short-lived. | And some analysts warned the positive sentiment may be short-lived. |
| "The market is up on Greece, but it's a temporary rise on a news event," said Mitsushige Akino, from Ichiyoshi Investment Management. | "The market is up on Greece, but it's a temporary rise on a news event," said Mitsushige Akino, from Ichiyoshi Investment Management. |
| "Fundamentals haven't changed a notch." | "Fundamentals haven't changed a notch." |
| Analysts say as well as the ongoing debt problems in the eurozone, investors are also worried about inflationary pressures in fast-growing economies in Asia. | Analysts say as well as the ongoing debt problems in the eurozone, investors are also worried about inflationary pressures in fast-growing economies in Asia. |
| Contagion fears | Contagion fears |
| Even though the Greek government won the confidence vote, there are still fears the problems may spread to bigger European economies such as Portugal, Ireland and Spain. | Even though the Greek government won the confidence vote, there are still fears the problems may spread to bigger European economies such as Portugal, Ireland and Spain. |
| As well as impacting the global financial system, any worsening of the conditions in Europe would also have a negative affect on trade from Asia. | As well as impacting the global financial system, any worsening of the conditions in Europe would also have a negative affect on trade from Asia. |
| "The Asian export machine has been slowing of late, perhaps because of these issues in Europe and the instability we've seen in Greece," said Andrew Robinson from Saxo Capital Markets. | "The Asian export machine has been slowing of late, perhaps because of these issues in Europe and the instability we've seen in Greece," said Andrew Robinson from Saxo Capital Markets. |
| "If it were to spread to Spain, Spain is a much larger economy, obviously it would have its impact on Asian exports." | "If it were to spread to Spain, Spain is a much larger economy, obviously it would have its impact on Asian exports." |
| 'Sigh of relief' | |
| Analysts said the fact that the Greek government won the confidence vote meant that the markets had one less risk factor to worry about. | |
| "On a short term basis, markets are breathing a sigh of relief," said Kelvin Tay of UBS bank. | |
| "You are seeing that reaction across the Asian markets," he added. | |
| However, Mr Tay warned that given the extent of the problems in Greece, the current solution was not sufficient to solve them. | |
| "We believe that for the solution to be found, there needs to be a Greek debt restructuring," he said. | |
| "This solution will only last them for the next twelve months," Mr Tay added. |