Asian stocks surge on European debt talks progress

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Vietnam’s stock index rose 1.01 per cent on good news from Europe.

Shares jumped throughout Asia on June 29 on the outcome of nightly talks between EU leaders, easing concerns over prolonged instability of the euro economy.

Euro zone members agreed on a programme to recapitalise banks without creating more government debt, and will take emergency action to lower borrowing costs for Italy and Spain. They also decided to create a single body to supervise EU banks.

European Council Chairman Herman Van Rompuy said the aim was to create a single supervisory mechanism to break the ‘vicious circle’ between banks and sovereign government debt.

The accord paves the way for the euro zone’s 500 billion euro bailout fund to recapitalise ailing banks directly.

The news were perceived with relief on Asian stock markets after fears have mounted over the last days that the euro crisis, if unsolved, could have a stronger impact on Asian economies than expected.

The MSCI index Asia Pacific ex Japan rose 2.1 per cent, while Japan’s Nikkei surged 1.6 per cent. The euro strengthened to $1.2628 from $1.2450, its biggest daily jump in eight months, as traders had to recover their short positions against the currency, which they had built up earlier on depressed market expectations on the summit.

Hong Kong’s Hang Seng index rose 2.19 per cent, Korea’s KOSPI 1.91 per cent and Singapore’s Strait Times index 1.36 per cent. Among other Southeast Asian countries, Indonesia’s stock index rose the most at 2.03 per cent, followed by Vietnam’s VN-Index at 1.01 per cent.

 

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Reading Time: 1 minute

Vietnam’s stock index rose 1.01 per cent on good news from Europe.

Shares jumped throughout Asia on June 29 on the outcome of nightly talks between EU leaders, easing concerns over prolonged instability of the euro economy.

Reading Time: 1 minute

Vietnam’s stock index rose 1.01 per cent on good news from Europe.

Shares jumped throughout Asia on June 29 on the outcome of nightly talks between EU leaders, easing concerns over prolonged instability of the euro economy.

Euro zone members agreed on a programme to recapitalise banks without creating more government debt, and will take emergency action to lower borrowing costs for Italy and Spain. They also decided to create a single body to supervise EU banks.

European Council Chairman Herman Van Rompuy said the aim was to create a single supervisory mechanism to break the ‘vicious circle’ between banks and sovereign government debt.

The accord paves the way for the euro zone’s 500 billion euro bailout fund to recapitalise ailing banks directly.

The news were perceived with relief on Asian stock markets after fears have mounted over the last days that the euro crisis, if unsolved, could have a stronger impact on Asian economies than expected.

The MSCI index Asia Pacific ex Japan rose 2.1 per cent, while Japan’s Nikkei surged 1.6 per cent. The euro strengthened to $1.2628 from $1.2450, its biggest daily jump in eight months, as traders had to recover their short positions against the currency, which they had built up earlier on depressed market expectations on the summit.

Hong Kong’s Hang Seng index rose 2.19 per cent, Korea’s KOSPI 1.91 per cent and Singapore’s Strait Times index 1.36 per cent. Among other Southeast Asian countries, Indonesia’s stock index rose the most at 2.03 per cent, followed by Vietnam’s VN-Index at 1.01 per cent.

 

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