- Title: MARKETS-ASIA/OPEN Asia cautious as Greece misses IMF loan payment
- Date: 1st July 2015
- Summary: TOKYO, JAPAN (JULY 1, 2015) (REUTERS) EXTERIOR OF TOKYO STOCK EXCHANGE (TSE) BUILDING SIGN READING (English): "JPX, TOKYO STOCK EXCHANGE" ELECTRONIC STOCK BOARD ALARM SOUNDING TO SIGNAL OPENING OF MARKET ELECTRONIC STOCK BOARD SHOWING NIKKEI AVERAGE ENDED AT 20291.05 UP 55.32 VARIOUS OF ELECTRONIC STOCK BOARD BEING UPDATED VARIOUS OF TSE STAFF WORKING INTERIOR OF TSE MARKE
- Embargoed: 16th July 2015 13:00
- Keywords:
- Location: China
- Country: China
- Topics: General
- Reuters ID: LVACRFWHSAXY1N5OW9DPYLEL5GI7
- Aspect Ratio: 16:9
- Story Text: Asian share markets were in a guarded mood on Wednesday (July 1) as Greece became the first developed economy to default on a loan with the International Monetary Fund (IMF), setting the scene for another day of uneasy action.
While an unwelcome milestone for Athens, it came as no surprise to investors after weeks of stop-start talks and the euro only fading a little to $1.1136.
Japan's Nikkei firmed 0.2 percent on Wednesday, a second day of small gains as it stabilizes after Monday's steep fall over Greek debt crisis.
"Since the Greek (debt crisis) issue has arisen, the Japanese government has been collecting and analyzing information. The government has been coordinating with the Bank of Japan and we have been dealing with it in a thorough manner," said Japan's Chief Cabinet Secretary Yoshihide Suga on Wednesday morning.
There was unexpectedly upbeat news from the Bank of Japan's latest survey of manufacturers which improved in the three months to June, supporting the bank's view that growth is gathering momentum.
The results of Bank of Japan's tankan survey came on top of a recent batch of mixed data, including an encouraging jump in consumer spending, sluggish exports and weak factory output.
The Nikkei share average opened the trade at 20,291.05.
Meanwhile, Seoul shares rose on Wednesday morning after continued bargain-hunting following heavy sell-off on Monday (June 29).
The Korea Composite Stock Price Index (KOSPI) was up 0.5 percent at 2,084.42 points.
The data was mixed from China where surveys showed sluggish factory activity but a pick up in service sector, a sign the transition to a more consumer-led economy remained on track.
Chinese shares got off to another erratic start, first diving before coming back toward flat. The CSI300 index .CSI300 was off 0.3, while the Shanghai Composite eased 0.6 percent.
Both indices had jumped on Tuesday (June 30) as Beijing's efforts to stem recent selling seemed to gain traction. A combination of cuts in interest rates, allowing local government pension funds to buy stocks and talk of behind-the-scenes "window guidance" to institutional investors, have helped calm a skittish market.
Australian shares rose 0.51 percent on Wednesday as investors clung to hopes that a deal will be done to keep Greece in the euro.
The S&P/ASX 200 index rose 27.890 points to 5486.900 to by 0156 GMT. The benchmark edged up 0.67 percent on Tuesday, but lost 5.5 percent in June.
There was little immediate reaction when the IMF confirmed Greece had missed a payment on its debt, perhaps taking it a step closer to an exit from the euro.
The IMF said Greece had asked for a last-minute repayment extension earlier on Tuesday which the IMF's board would consider "in due course."
European finance ministers will confer later on Wednesday over Greek Prime Minister Alexis Tsipras' request for a new two-year loan to pay debts that amount to nearly 30 billion euros.
Investors still cling to hopes that a deal will be done at some stage to keep Greece in the euro, keeping currency markets relatively range bound. - Copyright Holder: REUTERS
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