Asian markets rise, Greece hopes spur bargain buying

A woman walks past an electronic stock indicator in Tokyo in this file photo. Asian markets rose for a second straight day on Tuesday, May 29, 2012, with confidence boosted by hopes that Greece will avoid exiting the eurozone. AP PHOTO/SHIZUO KAMBAYASHI

HONG KONG—Asian markets rose for a second straight day on Tuesday as dealers picked up bargains after heavy selling through May, with confidence boosted by hopes that Greece will avoid exiting the eurozone.

Shares also received a lift on hopes that China will implement new stimulus measures to raise domestic demand and fast-track some major construction projects.

Investors, however, remained nervous by eurozone woes as attention turned to Spain, where a growing banking and borrowing crisis has raised fears the country could be forced to ask for a bailout.

Tokyo rose 0.74 percent, or 63.93 points, to 8,657.08, Seoul added 1.41 percent, or 25.74 points, to close at 1,849.91 while Sydney gained 1.14 percent, or 46.4 points, at 4,114,4.

Hong Kong closed 1.35 percent higher, adding 254.47 points to 19,055.46 and Shanghai rose 1.20 percent, or 28.27 points, up at 2,389.64.

Global markets have been in a downward spiral since May 6 elections in Greece saw anti-austerity parties – who have promised to tear up terms of a bailout package – post huge gains.

With no clear winner, the country has been hit by political uncertainty until another election on June 17, with analysts warning anti-bailout groups would win and in turn see Athens leave the euro.

However, weekend opinion polls showed the pro-austerity conservatives in front, fueling hopes Athens will eventually comply with the terms of the European Union-International Monetary Fund rescue deal.

While concerns that Greece could exit the eurozone remain high, Spain’s struggles have come to the fore in the past week after Bankia, one of the country’s biggest lenders, asked for $24 billion in state aid.

In Madrid Prime Minister Mariano Rajoy said Monday the country was struggling to borrow as the yields on benchmark Spanish bonds soared to 6.479 percent, considered too high for governments to keep servicing their debts.

However, he tried to soothe investors by saying that his government would not have to follow Greece, Ireland and Portugal in asking for a bailout to help pay its bills.

“Systemic risk is on the rise, and the problems have increasingly become circular, with banks themselves large holders of government debt,” ANZ Research analysts said in a note.

“Spain has become another problem child for the (European Union),” it said.

The euro bought $1.2534 in Asian trade, against $1.2543 in London, while it was at 99.67 yen compared with 99.95 yen. US markets were closed Monday for a holiday.

The dollar was at 79.50 yen Tuesday, from 79.52 yen in London.

Shares in Shanghai and Hong Kong shares were given an added lift by a report in the state-run Shanghai Securities News that Beijing would introduce measures to jumpstart demand for automobiles.

The news stoked expectations of more stimulus for other parts of the economy after a string of recent data indicating the world’s No. 2 economy is easing.

“Investors can find opportunities in sectors like railroads, airlines, cars, water conservation, green energy, cement and heavy metals,” Wang Bo, an analyst at China Minzu Securities, said.

“These are all areas that will get a boost in corporate profit as Beijing rolls out sector-specific stimulus projects here,” he added, according to Dow Jones Newswires.

On oil markets New York’s main contract, West Texas Intermediate crude for delivery in July, was up 31 cents at $91.17 per barrel while Brent North Sea crude for July was down 36 cents to $106.58 in the late afternoon.

Gold was at $1,573.60 an ounce at 1015 GMT, compared with $1,578.70 late Monday.

In other markets:

— Wellington rose 0.46 percent, or 16.04 points, to 3,478.29.

Telecom was up 1.57 percent at NZ$2.58 while Fletcher Building gained 1.79 percent to NZ$6.25.

— Manila closed 1.42 percent, or 70.37 points, up at 5,023.11.

GT Capital Holdings rose 3.10 percent to 498 pesos, Universal Robina added 1.50 percent to 61 pesos and Philippine Long Distance Telephone fell 1.79 percent to 2,306 pesos.

— Taipei surged 2.89 percent, or 206.29 points, to 7,342.29.

Leading smartphone maker HTC rose 4.10 percent to Tw$432.0 while Hon Hai Precision gained 4.80 percent at Tw$89.5.

— Kuala Lumpur rose 0.67 percent, or 10.38 points, at 1,565.32.

Financial firm CIMB Group Holdings gained 1.24 percent to 7.36 ringgit, while telecommunications company Axiata Group Bhd added 0.95 percent to 5.30 ringgit.

— Singapore closed up 0.52 percent, or 14.63 points, to 2,801.85.

United Overseas Bank closed up 0.46 percent to Sg$17.44 while Singapore Airlines gained 0.29 percent at Sg$10.53.

— Jakarta was flat, up 0.01 percent, or 0.38 points, to 3,919.06.

Telkom rose 2.7 percent to 7,600 rupiah and Bank Rakyat gained 0.7 percent to 5,850 rupiah.

— Bangkok rose 1.20 percent, or 13.73 points, to 1,153.66.

Banpu gained 1.72 percent to 474 baht, while PTT added 2.96 percent to 313 baht.

— Mumbai rose 21.74 points, or 0.13 percent, to 16,438.58.

India’s third-largest software exporter Wipro rose 2.72 percent to 409.7 rupees while the world’s largest coal miner Coal India rose 1.97 percent to 321.25.