Asian markets, euro rally after Greece vote

HONG KONG: Asian markets surged in opening trade Monday and the euro rose after Greece's pro-austerity conservative party narrowly won a crucial vote that lowers the risk of it exiting the eurozone. Tokyo jumped 2.17 percent, Sydney was 1.60 percent higher and Seoul advanced 2.25 percent while Wellington gained 0.40 percent. 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. While New Democracy did not win outright it will now be able to form a coalition with the left-leaning, pro-austerity Pasok party. The news boosted the single currency,
which surged to $1.2715 and 100.75 yen, up from $1.2644 and 99.47 yen in New York trade late Friday. The election was the second in six weeks in Greece 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. Despite the reprieve offered Sunday, analysts warned that it would not vanquish concerns about the embattled eurozone or Greece's economic future. "The Greece election results were a net buy incentive for stocks," Kenichi Hirano, operating officer at Tachibana Securities, told Dow Jones Newswires. However, he warned that "Greece's problems are far from over". And Paul Mackel, head of Asian currency research at HSBC in Hong Kong, said: "I'm surprised that there wasn't more volatility or euphoria after what has transpired. "There is still some room for disappointment to come in. This is a small bright spot and it could fade briefly." Eyes are now on a meeting of G20 nations in Mexico over the next two days, where Europe's debilitating debt crisis will be discussed ahead of a summit of European leaders next week. Gold was worth $1,622.10 an ounce at 0830 GMT, compared with $1,625.50 late Friday. (AFP)