BLBG:Asia Stocks, Oil Climb as Greece Concerns Ease
Asian stocks rose for a fifth day and commodities climbed on speculation the global recovery will be sustained after European officials approved an aid payment to Greece to prevent its default. The baht jumped the most since 2008 and Thailand’s default risk sank as concern of unrest eased.
The MSCI Asia Pacific Index rallied 1.2 percent at 2:18 p.m. in Tokyo. It pared gains of as much as 1.5 percent, while the euro erased an advance against the dollar after Standard & Poor’s said a debt rollover plan for Greece may put the country in “selective default.” Oil added 0.3 percent in New York, and copper reached a two-month high.
Equities are extending rallies that helped pare losses in the second quarter after finance ministers authorized an 8.7 billion-euro ($12.7 billion) payout to Greece. With efforts to end the nation’s debt crisis providing some relief, investors are adding to bets for interest-rate increases by the European Central Bank which meets this week.
“The near-term threat of a contagion event in relation to European sovereign debt has been avoided, leading to a short- term re-assessment of risk,” said Tim Schroeders, who helps manage $1 billion in global equities as a portfolio manager at Pengana Capital Ltd. in Melbourne. “The sustainability of the improved sentiment remains questionable given prevailing risks.”
To contact the reporter on this story: Shiyin Chen in Singapore at schen37@bloomberg.net.
To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net.
