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Asian shares mostly higher on Greece deal | |
(about 1 hour later) | |
Asian shares were mostly higher after a breakthrough deal in Greece for a bailout package from creditors provided some resolution in the debt crisis. | |
Eurozone leaders came out from talks on Monday in Brussels with a deal to keep Greece afloat and part of the euro currency union after months of negotiations. | Eurozone leaders came out from talks on Monday in Brussels with a deal to keep Greece afloat and part of the euro currency union after months of negotiations. |
But the euro fell from earlier gains to $1.0986, from $1.1004 in New York. | But the euro fell from earlier gains to $1.0986, from $1.1004 in New York. |
In Japan, the benchmark Nikkei 225 was up 1.6% at 20,411.40 in morning trade. | |
The euro also eased against the yen to 135.74, compared with 135.84 in US trade, as investors digested news of the long-awaited deal. | The euro also eased against the yen to 135.74, compared with 135.84 in US trade, as investors digested news of the long-awaited deal. |
Evan Lucas, market strategist at trading firm IG said that although the deal reduces the risk of a Greek exit from the eurozone right now, the bloc still faces significant issues in the medium term. | Evan Lucas, market strategist at trading firm IG said that although the deal reduces the risk of a Greek exit from the eurozone right now, the bloc still faces significant issues in the medium term. |
"Greek politics could collapse under the strain of this new deal and the subsequent elections that may transpire," he said in a note. | "Greek politics could collapse under the strain of this new deal and the subsequent elections that may transpire," he said in a note. |
"The viability of the programme is also a large risk if the 'reform' process is disjointed or feeble or straight out rejected by new governments." | |
Shares of Sony were down 2% after the electronics company announced its first new share offering in 26 years. | |
The move is intended to raise the capital for a larger restructuring program to push the business towards image sensors and video games. | The move is intended to raise the capital for a larger restructuring program to push the business towards image sensors and video games. |
China bucks trend | |
Chinese shares opened lower on Tuesday after rallying for the last three sessions to recover losses from its recent plunge. | |
The Shanghai Composite was down 0.4% to 3,956.47, while Hong Kong's Hang Seng index was lower by 0.5% to 25,088.68 in early trade. | |
Shares of telecommunications equipment maker ZTE surged 10% in Shenzhen after its board approved a share buyback plan estimated to be 1bn yuan ($161m; £104m). | |
In Australia, the S&P/ASX 200 was up 1.7% to 5,567.80 with miners leading the charge. | |
Index heavyweights BHP Billiton and Rio Tinto were up over 3% on expectations of good earnings reports next month. | |
South Korean shares were down 0.1% with the benchmark Kospi index at 2,059.07 points. |