Asian Stocks Rise Due To Greece Election Results
Stocks and the euro rose to the highest levels in a month, and commodities climbed as gains by pro-bailout parties in Greek elections eased concern the nation would exit the euro.
Indian stocks erased advances after the central bank unexpectedly left rates unchanged.
The MSCI All-Country World Index advanced 0.7 percent to the highest since May 15 at 8:04 a.m. in London.
The Stoxx Europe 600 Index climbed 1.1 percent and Standard & Poor’s 500 Index futures added 0.4 percent. The euro strengthened 0.5 percent to the highest since May 22, and the dollar and yen fell against most major counterparts.
The S&P GSCI Index of 24 commodities rose 0.8 percent while bond risk in Asia dropped to the lowest since May 8.
The euro extended last week’s 1 percent jump against the dollar, and U.S. stocks were poised to add to a weekly rally, the New Democracy and Pasok parties took 162 seats in the 300-member parliament, according to the official projection by the Interior Ministry in Athens based on 95 percent of the votes.
The New Democracy and Pasok parties won 162 seats, enough to form a majority in the 300-member parliament, according to Interior Ministry projections, easing concern that Greece would reject austerity measures needed to qualify for international aid.
India’s Sensex index erased earlier gains after central bank governor Duvvuri Subbarao left the benchmark repurchase rate at 8 percent, citing inflation concerns.
“The market will breathe a sigh of relief,” Todd Lowenstein, who helps oversee about $17 billion for Highmark Capital Management Inc. in Los Angeles, said in a phone interview.
“The results of the Greek election took a negative off the table versus this being a big positive. At the end of the day, there are still structural issues and imbalances that need to be corrected and dealt with.”