Asian shares higher after Greek bailout deal
HONG KONG—Asian shares were mostly higher on Wednesday as investors focused on domestic issues despite US and European markets giving Greece’s crucial bailout only a lukewarm welcome.
Tokyo was up almost one percent, closing at its highest level in more than six months as exporters were boosted by a sliding yen, with the Japanese unit breaking through the psychological 80 yen level against the dollar.
The Nikkei 225 index at the Tokyo Stock Exchange rose 0.96 percent, or 90.98 points, to 9,554.00, its strongest finish since August 4, while the Topix index of all first-section issues was up 1.12 percent, or 9.11 points, at 825.40.
Chinese shares rose almost as much, with the Shanghai Composite Index, which covers both A and B shares, ending up 0.93 percent, or 22.16 points, at 2,403.59.
Property firms led the gains on hopes commercial hub Shanghai may roll back some government limits on the real estate market, dealers said.
Hong Kong rose 0.33 percent, with the benchmark Hang Seng Index gaining 70.56 points to 21,549.28 on turnover of HK$70.41 billion ($9.08 billion).
Internet shopping portal Alibaba.com rocketed 42 percent on an offer by its Chinese parent company, itself part-owned by US giant Yahoo!, to take it private for the same price it floated at in 2007.
The rises came despite New York and European bourses giving only a limited response on Tuesday to a new 237-billion-euro ($310 billion) bailout package eurozone finance ministers agreed for Greece.
The measures are designed to keep the country in the single currency in return for tough budget cuts and close oversight of its government, and analysts expressed concern about the durability of the package.
But Asian markets shrugged off the doubts.
“It’s getting to the point where people are feeling that developments in Europe are becoming largely irrelevant to Asia,” Andrew Sullivan, principal sales trader at Piper Jaffray, told Dow Jones Newswires.
European stock markets fell in early cautious trade on Wednesday amid lingering eurozone debt concerns.
In morning deals, London’s FTSE 100 eased 0.11 percent to 5,921.72 points, Frankfurt’s DAX 30 slipped 0.40 percent to 6,880.33 points and in Paris the CAC 40 dipped 0.02 percent to 3,464.47.
In Asian trade the euro was mixed, buying $1.3220 and 105.94 yen from $1.3238 and 105.50 yen in New York late Tuesday.
The dollar rose to 80.15 yen from 79.69 yen, going above the 80 yen level for the first time in six months.
New York’s main oil contract, West Texas Intermediate crude for delivery in April, slipped 57 cents to $105.68 per barrel and Brent North Sea crude for April was up 39 cents at $121.05.
Gold was at $1,753.60 an ounce at 1050 GMT, from $1,737.10 on Tuesday.
In other markets:
— Seoul was 0.2 percent, or 4.41 points, higher at 2,028.65.
— Singapore fell 29.48 points, or 0.97 percent, to 2,995.59.
Oil rig maker Keppel Corp. shed 0.82 percent to Sg$10.89 and beverage distributor Fraser and Neave lost 0.15 percent to Sg$6.48.
— Mumbai fell 1.54 percent, or 283.36 points, to 18,145.25.
— Kuala Lumpur was down 3.26 points, or 0.21 percent, at 1,560.52.
Telecommunications firm Axiata Group lost 0.60 percent to 5.01 ringgit, while financial firm CIMB Group Holdings fell 0.69 percent to 7.24.
— Sydney closed flat, up 0.04 percent or 1.9 points to 4,293.1.
— Wellington fell 9.09 points or 0.27 percent to 3,328.23.
Index heavyweight Fletcher Building closed down 1.96 percent at NZ$6.51 after posting a 13 percent drop in half-year net profit. Air New Zealand was down 1.7 percent to NZ$0.88.
— Taipei rose 80.18 points, or 1.01 percent, to 8,001.68.
Hon Hai rose 0.83 percent to Tw$97.6 while TSMC was 0.38 percent lower at Tw$79.7.
— Manila rose 0.68 percent, or 33.35 points, at 4,934.29.
Megaworld Corp. gained 4.04 percent to 1.80 pesos but top-traded Metropolitan Bank and Trust Co. fell by 0.11 percent to 84.10 pesos.
— Jakarta fell 0.2 percent or 7.93 points to 3,995.02.
Consumer goods producer Unilever Indonesia declined 1.3 percent to 19,150 rupiah, while car maker Astra International fell 2 percent to 72,350 rupiah.
— Bangkok was down 0.23 percent, or 2.57 points, to 1,137.82.
Banpu lost 2.07 percent to 662 baht, while PTT added 0.28 percent to 358 baht.
