HONG KONG: Asian markets and the euro rallied Monday after theeurozone agreed to lend Spain up to US$125 billion to save itsbanks, but analysts warn the deal is just a sticking plaster forEurope's wider problems. The weekend also saw China release a mixed bag of data that,despite not being as bad as expected, was unable to soothe dealers'concerns over the world's second biggest economy. But it didprovide hope that Beijing will introduce more easing measures. Tokyo surged 1.96 percent, or 165.64 points, to 8,624.90 and Seouljumped 1.71 percent, or 31.40 points, to end at 1,867.04. Hong Kong climbed 2.44 percent, or 451.29 points, to 18,953.63 andShanghai gained 1.07 percent, or 24.41 points, to 2,305.86. Taipei rose 1.72 percent, or 120.58 points, to 7,120.23. In Southeast Asia, Singapore closed up 1.82 percent, or 49.92points, to 2,787.81. Bangkok rose 2.75 percent, or 30.97 points, to1,158.07. Kuala Lumpur ended up 0.50 percent, or 7.79 points, at1,578.41. Jakarta advanced 1.07 percent, or 40.89 points, to3,866.21. Manila closed 1.64 percent higher, adding 81.78 points to5,075.85. Meanwhile Mumbai fell 0.30 percent, or 50.86 points, to 16,668.01.Sydney was closed for a public holiday. On forex markets the single currency bought US$1.2630 and 100.50yen against US$1.2514 and 99.49 yen in New York on Friday. The US dollar was trading at 79.57 yen from 79.49 yen. After an emergency video conference lasting more than two hours onSaturday, eurozone finance ministers issued a statement saying theywere "willing to respond favourably" to a Spanish plea for help forits stricken lenders. Spain's Economy Minister Luis de Guindos insisted the handout wasnot a rescue but a loan that imposes conditions on the banks. However, it marked a dramatic climbdown for Madrid, which recentlydenied it needed any outside aid. EU Economic Affairs Commissioner Olli Rehn said the Spain deal wascritical to reassure jittery markets. "It is a very clear signal to the market, to the public, that theeuro (area) is ready to take decisive action in order to calm downmarket turbulence and contagion," Rehn said. Stock markets in Europe opened sharply higher on Monday. In the first few minutes of trade Madrid soared 5.8 percent, withBankia -- the lender that asked the government for billions ofdollars in aid -- rocketing almost 20 percent. London's FTSE rose 1.80 percent, the Paris CAC 40 surged 1.98percent and Frankfurt added 2.04 percent. Monday's surge in the stock markets marked a rebound from recentweeks as traders have become nervous about Spain's precariousfinancial position as well as a possible Greek exit from the euroarea. The deal was hailed by Germany, France, Japan, China and the UnitedStates as well as the International Monetary Fund. "Sentiment is in a risk-on mode and the news is giving the market asense of relief," Kengo Suzuki, currency strategist at MizuhoSecurities, said. But Goldman Sachs warned that there were still problems in theeurozone's financial system. "(It's a) positive near-term development for Spain, and inparticular for its banks. But it does not solve Spain's overallfiscal and macroeconomic challenges, which remain substantial",Goldman said in a research note. It added that the region's crisis "continues to be addressed on acountry-by-country basis rather than at a systemic level". Yuji Saito, director of foreign exchange at Credit Agricole Bank inTokyo, said questions also remained about details of the bank deal,as uncertainty looms over Greek elections aimed at ending apolitical stalemate in the debt-riddled nation. "The agreement won't solve the debt concerns completely because thequestion remains how and who will give money to Spain, and ofcourse the Greek election next week," Saito told Dow JonesNewswires. Despite efforts by policymakers, the eurozone crisis has now spreadto the region's fourth-biggest economy -- Spain's is twice thecombined size of those of Greece, Ireland and Portugal, which havealso needed a bailout. Spain finally sought aid as its borrowing costs on the open marketssoared and the price for fixing the banks' balance sheets, heavilyexposed to a property bubble that burst in 2008, spiralled. In China the government said Saturday that inflation eased to aslower-than-forecast 3.0 percent in May while industrial outputgrew at 9.6 percent year-on-year, also weaker than expected. And on Sunday figures showed that exports and imports shot up 15.3percent and 12.7 percent respectively last month. The numbers will give policymakers room to ease monetary policyfurther and come days after Beijing cut interest rates for thefirst time since the end of 2008. The news from Europe helped oil post big gains. New York's main contract, light sweet crude for delivery in July,soared US$1.63 to US$85.73 per barrel in afternoon trade. BrentNorth Sea crude for July delivery added US$2.63 to US$101.10. Gold was at US$1,697.50 an ounce at 0810 GMT, compared withUS$1,577.05 late Friday. - AFP/ir. I am an expert from led-floodlighting.com, while we provides the quality product, such as LED High Bay Lighting Fixtures , Indoor LED Flood Lights Manufacturer, LED Street Lighting Fixtures,and more.
Related Articles -
LED High Bay Lighting Fixtures, Indoor LED Flood Lights Manufacturer,
|