Latest Stories

Asian shares rise as Europe announces debt plan

HONG KONG – Asian markets were higher and the euro rose in early trade on cautious optimism Thursday as European leaders announced they had struck a deal to tackle the region’s crippling sovereign debt woes.

After 10 hours of painstaking talks in Brussels, banks holding Greece’s mountain of debt agreed to take a 50 percent “haircut”, breaking a deadlock many hope will go towards solving the two-year-old crisis.

The summit also established a deal that will force lenders to increase their defences to absorb any losses on the Greek debt writedown while more than doubling a rescue fund aimed at protecting other economies from Greece’s fate.

Tokyo added 0.54 percent by the break, Hong Kong rose 1.35 percent, Shanghai was 0.64 percent higher and Seoul climbed 1.07 percent.

Sydney was closed indefinitely due to a technical glitch.

The agreement by holders of Greek bonds to write down 50 percent of their debt — much more than the 21 percent they agreed to at a summit in July — will see help Athens slash 100 billion euros ($140 billion) from the 350 billion euros it owes.

Lenders agreed to the move after German Chancellor Angela Merkel and French President Nicolas Sarkozy broke off from long-running talks to speak directly to the head of the banking lobby.

Convincing banks to erase billions in Greek debt is a key part of a grand deal leaders had pledged to deliver, along with the bank recapitalisation and beefed-up rescue fund.

Banks had earlier agreed to a recapitalisation to protect themselves against a Greek writedown.

The declaration on recapitalisation, which came after a meeting of all 27 European Union members, lacked any details but sources said it would amount to 108 billion euros.

That had been contingent only on a full package being agreed to protect the euro.

Soon after the talks wrapped up in the early hours, Sarkozy announced that the European Financial Stability Facility (EFSF) rescue fund would be increased to one trillion euros from the 440 billion agreed in July.

The EFSF, the main weapon against the crisis, has already been used to help Portugal and Ireland, and would be tapped in a new Greek rescue. However, it would be too small for bigger endangered economies, such as Italy and Spain.

Global powers, from the United States to Japan and China, had been pressing European leaders to come up with a lasting solution to the debt crisis before a G20 summit in France on November 3 and 4.

The crisis has sent markets spinning amid fears that it could spill over onto the global economy and lead to another financial meltdown.

On currency markets the euro was higher, buying $1.3976 in Tokyo trade against $1.3908 late Wednesday in New York, while it rose to 106.27 yen from 105.98.

The dollar was at 76.03 yen, compared with 76.21 yen, after hitting a fresh post-World War II low of 75.71 yen in New York on Wednesday.

New York’s main contract, light sweet crude for delivery in December, gained $1.11 to $91.31 per barrel.

Brent North Sea crude for December delivery added 70 cents to $109.61.

By 0230 GMT, gold was up at $1,726.55 an ounce, against $1,713.50 late Wednesday.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Asian shares , Finance , Foreign Exchange , Markets and Exchanges , Stock Market

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • Napoles tags over 100 officials in pork scam – Lacson
  • Vitangcol to sue Czech envoy
  • Senator’s kickback from pork bigger than those of Enrile, Estrada, Revilla – Lacson
  • 43 out of 414 Etihad passengers yet to be found, tested for MERS-CoV – Palace
  • Sandigan junks Marcos family claim to Paoay property
  • Sports

  • Caguioa blasts ‘no heart, soft’ Ginebra on Twitter
  • San Mig Coffee grinds out win over Alaska to force decider
  • UP nips St. Benilde; Adamson blasts RTU in Filoil women’s caging
  • Kevin Garnett responds to Raptors’ GM F word
  • Albert Pujols hits 500th HR of major league career
  • Lifestyle

  • Entering the monkhood a rite of passage
  • Haneda International Airport: A destination on its own
  • Wanted: Beauty queen with a heart that beats for the environment
  • Kim Atienza: At home with art and design
  • Life lessons I want to teach my son
  • Entertainment

  • Bollywood Oscars, film stars come to Florida
  • Ex-Fox exec denies allegations in sex abuse suit
  • Kris Aquino backtracks, says Herbert Bautista and her are ‘best friends’
  • Summer preview: Chris Pratt enters a new ‘Galaxy’
  • Bon Jovi helps open low-income housing in US
  • Business

  • SM to rebuild Tacloban hospital
  • PSEi slips after 4-day rally
  • Toyota sells 2.58 million vehicles, outselling GM
  • McDonald’s 1Q profit slips as US sales decline
  • SEC approves SM’s P15B retail bond offer
  • Technology

  • ‘Unlimited’ Internet promos not really limitless; lawmakers call for probe
  • Viber releases new design for iPhone, comes to Blackberry 10 for the first time
  • Engineers create a world of difference
  • Bam Aquino becomes Master Splinter’s son after Wiki hack
  • Mark Caguioa lambasts Ginebra teammates on Twitter
  • Opinion

  • One-dimensional diplomacy: A cost-benefit analysis of Manila’s security deal with Washington
  • No ordinary illness
  • Reforest mountains with fire trees and their kind
  • Day of the Earth
  • When will Chinese firm deliver new coaches?
  • Global Nation

  • 19 Ukrainians, Russians, Filipinas rescued in bar raid
  • Filipinos coming home from Mideast must obtain MERS clearance – DOH
  • US Secret Service in Manila ahead of Obama visit
  • Palace thanks Estrada for successful HK mission
  • Hong Kong accepts PH apology; sanctions also lifted
  • Marketplace