MARKETS-ASIA China stocks leap on emergency measures, Sydney sags on Greece

Record ID: 148204

  • Title: MARKETS-ASIA China stocks leap on emergency measures, Sydney sags on Greece
  • Date: 6th July 2015
  • Summary: SYDNEY, AUSTRALIA (JULY 6, 2015) (REUTERS) SYDNEY STOCK EXCHANGE BUILDING ELECTRONIC BOARD DISPLAYING STOCK PRICES AND GAINS AND LOSSES ELECTRONIC BOARD DISPLAYING STOCKS ALL ORDINARIES GRAPH ELECTRONIC BOARD DISPLAYING TOP 10 S&P ASX 200 STOCKS
  • Embargoed: 21st July 2015 13:00
  • Keywords:
  • Location: Japan
  • Country: Japan
  • Topics: General
  • Reuters ID: LVAC3NIY37X3TYJPPVI0OPKDY9FA
  • Aspect Ratio: 16:9
  • Story Text: Chinese stocks rose on Monday (July 6) after Beijing unleashed an unprecedented series of support measures over the weekend to stave off the prospect of a full-blown crash that was threatening to destabilise the world's second-biggest economy.
    In an extraordinary weekend of policy moves, brokerages and fund managers vowed to buy massive amounts of stocks, helped by China's state-backed margin finance company, which in turn would be aided by a direct line of liquidity from the central bank.
    Investors, who had ignored official measures to prop up the market as equity indexes slid around 12 percent last week, finally reacted, with the CSI300 index of the largest listed companies in Shanghai and Shenzhen jumping 4 percent, while the Shanghai Composite Index gained 3 percent.
    Blue chips, the explicit target of the stabilisation fund, outperformed stocks on the small-cap ChiNext indexes.
    The rapid decline of China's previously booming stock market, which by the end of last week had fallen around 30 percent from a mid-June peak, had become a major headache for President Xi Jinping and China's top leaders, who were already struggling to avert a sharper economic slowdown.
    In Hong Kong, the benchmark Hang Seng index opened flat, up by just 0.17 percent by 0935 local time (0135 GMT).
    In Japan and Australia, shares slipped after Greek voters overwhelmingly rejected terms of a rescue package, sending the safe-haven yen up amid fears the cash-strapped nation might exit the euro zone.
    While Japan's Nikkei shares fell 1.4 percent to 20200.15 at the opening of the trade, Japan's top government spokesman said that the impact from Greece on share prices and the foreign exchange market has been very limited and within expectation.
    "The ties between Japan and Greece in economy and financial markets are very limited," Chief Cabinet Secretary Yoshihide Suga said in a regular news conference.
    "I believe euro zone nations will take responsible actions to address the Greek situation," Suga added.
    Australian shares slipped 1.12 percent.
    The S&P/ASX 200 index fell 62.091 points to 5476.200 by 0153 GMT.
    Greeks voted to reject conditions of a rescue package on Sunday (July 5), throwing the future of the country's euro zone membership into further doubt.
    The "No" camp prevailed by a much higher margin than expected, deepened Athen's standoff with lenders.
    Following the outcome, calls mounted in Berlin to cut Athens loose from the currency union, raising the risk of a full-blown crisis in the euro zone.
    Stunned European leaders called a summit for Tuesday (July 7) to discuss their next move as investors fear "Grexit" could encourage anti-euro sentiment in other countries.
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