Asian markets rise after Greece opinion polls
Passers-by check the electronic stock indicator of a securities firm in Tokyo on May 23, 2012. Asian markets rose on Monday, May 28, 2012, as opinion polls indicated a victory for pro-austerity conservatives in next month's Greek general election, but gains were tempered by concerns about Spain. AP PHOTO/SHIZUO KAMBAYASHI
HONG KONG—Asian markets rose on Monday as opinion polls indicated a victory for pro-austerity conservatives in next month’s Greek general election, but gains were tempered by concerns about Spain.
The euro also saw a small “relief rally” on hopes that a win for one of the two main groups in the June 17 vote would mean Athens sticks to its European Union-International Monetary Fund bail-out terms and stays in the currency bloc.
Tokyo gained 0.15 percent, or 12.76 points, to 8,593.15 while Sydney climbed 0.96 percent, or 38.8 points, to 4,068.0, and Mumbai rose 1.23 percent, or 199.02 points, to 16,416.84.
Hong Kong closed 0.47 percent higher, adding 87.58 points to 18,800.99 while Shanghai advanced 1.19 percent, or 27.81 points, to 2,361.37.
Seoul was closed for a public holiday.
A string of polls on Sunday showed the New Democracy party on course to win most seats in the election, albeit without an overall majority, with as much as 25.8 percent of the vote.
Investors were cheered by the news after the last election on May 6, when 70 percent of voters refused to back parties supporting the stringent terms imposed on Greece for its much-needed bail-out cash.
There have been fears that the radical leftwing Syriza party – which is opposed to the EU-IMF deal – will make more gains, which could eventually see Athens leave the euro.
“Poll results in Greece have the potential to be the key driver of investor strategy over the next two weeks,” Ric Spooner, chief market analyst at CMC Markets, said in a note.
“If a realistic possibility of an effective pro-bail-out government emerges, we are likely to see risk being re-priced and a rally in equity markets,” he added, according to Dow Jones Newswires.
On currency markets the euro – which last week briefly fell below $1.25 to its lowest level since July 2010 – bought $1.2590 and 99.95 yen in European trade, up from $1.2515 and 99.66 yen in New York late Friday.
The dollar was trading at 79.40 yen against 79.64 yen in New York.
Traders are also nervously looking across the Mediterranean at Spain, where troubled lender Bankia asked the government for 19 billion euros ($24 billion) in what would be the largest bank bail-out in the country’s history.
The plight of Bankia – which holds about 10 percent of the nation’s bank deposits – has added to the concerns over the crisis gripping Spain and the rest of the eurozone.
In early trade Monday shares in Bankia plummeted 28.66 percent on the Madrid stock market.
“The market’s sense of caution is clearly spreading from Greece to Spain now,” said Toshiyuki Kanayama, market analyst at Monex Inc.
Oil prices rose. New York’s main contract, West Texas Intermediate crude for delivery in July, was up 90 cents to $91.76 per barrel while Brent North Sea crude for July gained 74 cents to $107.57 in late afternoon.
Gold was at $1,578.70 an ounce at 1100 GMT, compared with $1,563.47 late Friday.
In other markets:
— Singapore added 0.52 percent, or 14.47 points, to 2,787.22.
DBS Bank gained 0.91 percent to Sg$13.29 while palm oil producer Wilmar International was up 1.35 percent at Sg$3.76.
— Taipei closed 0.91 percent, or 64.37 points, higher at 7,136.00.
Taiwan Semiconductor Manufacturing Co. was up 2 percent at Tw$81.6 while Hon Hai Precision added 1.55 percent to Tw$85.4.
— Manila closed 0.54 percent, or 26.77 points, higher at 4,952.74.
Ayala Corp. rose 1.4 percent to 417 pesos and Security Bank added 5.3 percent to 134.50 pesos.
— Wellington fell 0.69 percent, or 23.98 points, to 3,462.26.
— Kuala Lumpur gained 0.25 percent, or 3.82 points, to 1,554.94.
UEM Land Holdings ended 2.6 percent higher at 2.01 ringgit and CIMB Group Holdings gained 1 percent to 7.27 ringgit, while AirAsia lost 1.4 percent to close at 3.55 ringgit.
— Jakarta rose 0.41 percent, or 16.18 points, to 3,918.69.
Bank Mandiri added 2.2 percent to 7,050 rupiah, Telkom gained 2.1 percent to 7,400 rupiah and Astra Agro Lestari climbed 3.16 percent to 19,600 rupiah.
— Bangkok ended up 0.63 percent, or 7.10 points, to 1,139.93.
Banpu dropped 0.43 percent to 466 baht and Siam Cement added 0.30 percent to 333 baht.
