Most Asia markets advance, Hong Kong and Shanghai lead way
A woman rides a bicycle past an electronic stock board of a securities firm in Tokyo Tuesday, May 26, 2015. Major Asian markets mostly rose Tuesday, with Hong Kong and Shanghai leading the way, while Tokyo marked an eighth straight gain to a 15-year high. AP PHOTO/EUGENE HOSHIKO
HONG KONG–Major Asian markets mostly rose Tuesday, with Hong Kong and Shanghai leading the way, while Tokyo marked an eighth straight gain to a 15-year high.
Greece’s snail-paced talks with creditors over reforming its bailout conditions continue to weigh on the euro, with little sign of a deal in sight despite a repayment deadline next week.
Hong Kong added 0.92 percent, or 257.03 points, to 28,249.86–its highest close since December 2007–and Shanghai jumped 2.02 percent, or 97.10 points, to 4,910.90 — the highest since January 2008.
The indexes were boosted by hopes for fresh Chinese measures to boost the economy as well as Beijing’s decision Friday to relax rules on access to mainland financial markets.
Tokyo ended up 0.12 percent, or 23.71 points, at 20,437.48 helped by a weaker yen, hopes for corporate earnings and the Bank of Japan’s ultra-loose monetary policy.
Sydney gained 0.91 percent, or 51.9 points, to close at 5,773.4. But Seoul slipped 0.12 percent, or 2.60 points, to 2,143.50.
With Wall Street and most European markets closed Monday for public holidays there were few catalysts outside Asia to drive business.
But Shanghai added to a more than three percent rise Monday while Hong Kong was supported by an announcement Friday that Hong Kong and China would from July 1 allow cross-border sales of investment funds to retail investors.
The move is the latest opening by China of its financial markets and comes after November’s launch of the cross-border tie-up between the Hong Kong and Shanghai stock exchanges.
Euro hit by Greece fears
Traders are awaiting the release of key US data this week, including revised economic growth for the first quarter and durable goods orders.
The results will provide more of a clue about the Federal Reserve’s timetable for raising interest rates. The central bank’s chief Janet Yellen said Friday she expects a rise “at some point this year” although she warned there were still weaknesses in the economy.
On currency markets the dollar was at 122.55 yen compared with 121.66 yen Monday.
The euro slipped to $1.0900 from $1.0980. It was at 133.56 yen compared to 133.60 yen.
Investors are warily watching Greece’s talks with the European Union and International Monetary Fund, which have dragged on for months with little progress.
On Monday Athens said it would keep servicing debt for as long as it can, with about 300 million euros due on June 5.
“To the extent that we are able to pay, we will keep on repaying these obligations,” said spokesman Gabriel Sakellaridis.
He added: “It is the government’s responsibility to be able to repay all these obligations… It is also the responsibility of the creditors to be faithful to (their) loan obligations.”
Greece’s government has been tied up in negotiations with its creditors for the past four months in a bid to unlock some 7.2 billion euros in bailout cash. But it has refused to agree to many of the austerity measures demanded of it.
There are fears that if it defaults on its repayments Greece could end up tumbling out of the eurozone.
Oil prices were lower in late Asian trade. US benchmark West Texas Intermediate for July delivery eased 12 cents to $59.60 while Brent crude for July fell 34 cents to $65.18.
Gold fetched $1,195.35 compared with $1,204.22 late Monday.
In other markets:
— Taipei rose 0.25 percent, or 24.24 points, to 9,669.41.
Hon Hai Precision Industry added 0.52 percent to Tw$97.4 while Taiwan Semiconductor Manufacturing Co was 0.68 percent lower at Tw$146.5.
— Wellington added 0.87 points to 5,795.86.
Air New Zealand jumped 1.72 percent to NZ$2.96 and Fletcher Building rose 0.93 percent to NZ$8.64.
— Manila closed 0.43 percent, or 33.03 points, lower at 7,728.50.
GT Capital Holdings was up 0.14 percent at 1,428 pesos, Megaworld sank 4.2 percent to 4.79 pesos while Metrobank eased 0.22 percent to 92.80 pesos.
— Mumbai fell 0.41 percent, or 112.47 points, to end at 27,531.41 points.
Mining major Vedanta Limited fell 2.33 percent to 195.35 rupees, while Bharat Heavy Electricals rose 2.88 percent to 241.00 rupees.
— Bangkok slid 0.67 percent, or 10.18 points, to 1,497.98.
Bumrungrad Hospital fell 4.44 percent to 172 baht, while supermarket operator Big C Supercenter dropped 2.22 percent to 198.50 baht.
— Jakarta ended up 0.62 percent, or 32.54 points, at 5,320.90.
Indofood Sukses Makmur jumped 2.18 percent to 7,025 rupiah, while construction firm Wijaya Karya fell 1.80 percent to 3,275 rupiah.
— Singapore fell 0.03 percent, or 0.87 points, to close at 3,459.98.
Singapore Telecom rose 0.47 percent to Sg$4.24 while DBS Bank fell 0.34 percent to Sg$20.78.
— Kuala Lumpur fell 3.31 points, or 0.19 percent, to close at 1,764.07.
Telekom Malaysia lost 0.54 percent to 7.34 ringgit and Malayan Banking dipped 0.22 percent to 9.15, while Tenaga Nasional added 0.45 percent to 7.34 ringgit.
