World stocks up after deal over Greek debt reached
World stock markets rise after EU, IMF agree on a deal to help Greece deal with its debt
An investor smiles in front of the stock price monitor at a private securities company Tuesday, Nov. 27, 2012 in Shanghai, China. Asian stock markets rose Tuesday after talks over Greece's financial crisis ended with an agreement on how to reduce its debt load, paving the way for the cash-strapped country to receive the next installment of a bailout loan. (AP Photo)
BANGKOK (AP) -- World stock markets rose Tuesday after talks over Greece's financial crisis ended with an agreement on how to reduce its debt load, paving the way for the cash-strapped country to receive the next installment of a bailout loan.
Finance ministers of the 17 countries that use the euro and representatives of the International Monetary Fund reached an agreement early Tuesday that will enable Athens to receive €34.4 billion ($40.8 billion) immediately and three additional payments in early 2013.
"This is quite positive. It definitely gives support to the local stock market," said Dickie Wong, executive director of research at Kingston Securities Ltd. in Hong Kong.
In early European trade, Britain's FTSE 100 rose 0.5 percent to 5,816.49. Germany's DAX added 0.6 percent to 7,334.24 and France's CAC-40 gained 0.6 percent to 3,522.04.
Futures augured gains on Wall Street. Dow Jones industrial futures rose 0.1 percent to 12,949. S&P 500 futures advanced 0.1 percent to 1,405.20.
Greece has endured five years of recession and a 25 percent unemployment rate. It has been locked out of the international long-term debt market by exceptionally high interest rates demanded for its bonds since 2010, and has been relying on funds from rescue loans by other euro countries and the IMF.
Asian markets also posted gains. Japan's Nikkei 225 index rose 0.4 percent to close at a seven-month high of 9,423.30. South Korea's Kospi rose 0.9 percent to 1,925.20. Australia's S&P/ASX 200 gained 0.7 percent to 4,456.80. Benchmarks in Taiwan, Singapore, Thailand and the Philippines also rose. Indonesia and New Zealand fell.
Hong Kong's Hang Seng lost 0.1 percent to 21,844.03. In mainland China, the Shanghai Composite Index fell 1.3 percent 1,991.16, its lowest close in nearly four years. On Jan. 23, 2009, the index closed at 1,990.66. The smaller Shenzhen Composite Index plummeted 3 percent to 765.52.
Wong said investors are taking a "wait and see" stance ahead of the national economic work conference in early December, a forum for leaders involved in economic policy.
"Before this meeting, the sentiment of the Chinese stock market will remain sluggish," he said.
Zhang Yang, analyst at Sinolink Securities in Shanghai, said investors are disappointed that authorities have not taken new action to help the economy following the Communist Party congress earlier this month.
"It was panic selling," Zhang said. "I think there still exists room for more losses."
Benchmark oil for January delivery was up 24 cents to $87.98 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 54 cents to close at $87.74 on the Nymex on Monday.
In currencies, the euro rose to $1.2975 from $1.2963 late Monday in New York. The dollar rose to 82.20 yen from 82.18 yen.
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AP researcher Fu Ting contributed from Shanghai.
