Asia Shares Mostly Higher After Greek Vote, Dollar up After Yellen

Japan\'s Nikkei (.N225) rose 0.5 percent, as did Australian shares (.AXJO). South Korea\'s Kospi (.KS11) was up 0.2 percent.

Published: 16th July 2015 08:39 AM  |   Last Updated: 16th July 2015 08:39 AM   |  A+A-


A videographer films an electronic board showing the Japan's Nikkei average and related indexes is seen next to a computer showing the market indexes at the Tokyo Stock Exchange (TSE) in Tokyo, Japan, July 9, 2015. | REUTERS

TOKYO:  Asian stocks were mostly higher on Thursday after the Greek parliament approved a bailout plan while the dollar stood tall after Federal Reserve Chair Janet Yellen reinforced expectations for a U.S. rate hike.

Japan's Nikkei <.N225> rose 0.5 percent, as did Australian shares <.AXJO>. South Korea's Kospi <.KS11> was up 0.2 percent.

MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> was flat, with the focus on how Chinese shares will fare when they begin trading.

The Greek parliament passed a sweeping bundle of austerity measures demanded by European partners, a price to pay for opening talks on a multi-billion euro bailout package near-bankrupt Athens needs to stay in the euro zone.

The euro, already beaten down overnight against the dollar by Yellen's rate views, showed limited reaction to the Greek vote outcome which did not surprise many in the market.

The European common currency stood flat at $1.0954 <EUR=> after shedding 0.5 percent overnight. The dollar traded at 123.91 yen <JPY=> and in reach of a near three-week high of 123.97.

In her semiannual testimony to Congress on Wednesday, Yellen repeated her view that the Fed will likely hike interest rates this year if the U.S. economy expands as expected, and cited improvement in the labour market.

"Not only did Yellen confirm that rates will rise this year but it is her view that waiting too long would mean rates would have to rise at a faster pace later," Kathy Lien, managing director of FX Strategy for BK Asset Management, wrote.

"She prefers to start earlier to allow for a more gradual rate path. As a result every FOMC meeting this year including September is a live meeting at which the central bank could raise rates."

It was a different story for Canada, which saw its central bank on Wednesday cut key interest rates for a second time this year amid a flagging economy.

The Canadian dollar was at C$1.2922 <CAD=D4> to the greenback after touching C$1.2958, its lowest since March 2009.

The New Zealand dollar slumped under a similar predicament after weaker-than-expected inflation data cemented expectations for a rate cut there as early as next week.

The kiwi skidded to $0.6560 <NZD=D4>, a low not seen since late 2009.

In commodities, crude oil rebounded modestly after sliding overnight on expectations increased exports from Iran will add to a global supply glut and on rising inventories at the delivery hub at Cushing, Oklahoma. [O/R]

U.S. crude <CLc1> rose 0.4 percent to $51.59 a barrel after dropping 3 percent on Wednesday.

Tuesday's agreement on Tehran's nuclear programme between six world powers and Iran is expected to result in the lifting of sanctions, which have limited sales of Iranian oil for several years, in early 2016.

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp