Asian markets, euro rally

Europe’s biggest creditors — which called for leaders in Greece to act quickly to form a cabinet.
Tokyo stocks jumped 1,77 percent, or 151,70 points, to 8 721,02, Sydney was 1,96 percent higher, or 79,6 points, at 4 136,9, while Seoul climbed 1,81 percent, ending up 33,55 points at 1 891,71.

Hong Kong rose 1,01 percent, or 193,87 points, to 19 427,81 and Shanghai closed up 0,40 percent, or 9,20 points, at 2 316,05.
Dealers cheered Sunday’s result, which saw the New Democracy party win about 30 percent of the vote, just ahead of the radical Syriza group which had campaigned on the promise of tearing up an EU-IMF bailout agreement.
New Democracy did not win outright but Greece’s electoral system gives it an extra 50 seats in the 300-member parliament for coming first, so that it should be able to form a coalition with the left-leaning, pro-austerity Pasok party.

The news boosted the single currency in Asian trade, which surged to morning highs of US$1,2727 and 100,86 yen before falling to sit at US$1,2614 and 100,11 yen.
It sat at US$1,2644 and 99,47 yen in New York trade late Friday.
In Europe, after an opening rally, stock markets petered out. In late morning trade, London’s FTSE 100 index of leading companies fell 0,07 percent to 5 472,27 points,

Frankfurt’s DAX 30 gained 0,72 percent to 6 274,01 points.
In Paris the CAC 40 climbed 0,20 percent to 3 094,47, while Madrid’s IBEX 35 was down 1,16 percent, awaiting details of Spain’s 100-billion-euro bank bailout.
The election in Greece was the second in six weeks after May 6 polls failed to produce a government, stoking fears that the political stalemate would paralyse efforts to bring the country back from the brink.

The vote essentially became a referendum on the country’s membership of the eurozone, with European leaders warning that a win for Syriza would probably see Athens renege on its debt commitments and ultimately exit the  bloc.
Japan welcomed the result but called on Europe to “urgently” strengthen its financial sector and pressed Greece to swiftly form a new government.

“We will be paying close attention to upcoming negotiations to form a coalition,” Chief Cabinet Secretary Osamu Fujimura, the government’s top spokesman, told reporters in Tokyo.
“Our country hopes that a stable government will be launched early and make progress towards stabilising markets,” he added.

China echoed those sentiments, with the official Xinhua news agency saying in a commentary: “The Greek parties must work together to form a new government quickly and convince the Greek voters of the need for painful austerity.”

But analysts warned Sunday’s developments would not vanquish concerns about the embattled eurozone or Greece’s economic future.
Yoshikiyo Shimamine, economist at Dai-ichi Life Research Institute in Tokyo, said the election result meant Greece had just “returned where it was before”.
“They are back to the difficult path they had been taking before. I pay respects to the Greek people who chose this road, but it will be a painful, tough road,” he said. — AFP.