Asia shares win relief but Greece hangs over markets

July 07, 2015 14:59
A pedestrian looks at a monitor in Tokyo which shows falling indices worldwide in the wake of Greece's rejection of more austerity in Sunday's referendum. Photo: Reuters

Greece continues to hound global stock markets, with Asia on edge amid uncertainty over the eurozone.

On Tuesday, Asian stocks won a reprieve but a sell-off in China made optimism short-lived.

Chinese shares tumbled almost 2 percent in early trading, reversing much of Monday's gains after unprecedented government steps to stabilize the market, according to Reuters.

Japan's Nikkei rose 1.2 percent while MSCI's broadest index of Asia-Pacific shares outside Japan, which fell to six-month low on Monday, was up 0.3 percent.

Meanwhile, European and US stocks slipped after Greece voted overwhelmingly to reject more austerity.

However, despite the huge uncertainty stemming from the Greek saga, most markets were relatively calm after the initial sell-offs.

The euro also rebounded from Monday's one-week low to US$1.1044.

For now, investors are holding out hope that Greece will manage to strike a deal with its creditors and prevent an exit from the eurozone.

But it's unclear how much it would differ from other proposals that were rejected in the past or if creditors, especially Germany, is willing to concede some debt relief to Athens.

In the currency market, the Australian dollar fell to a six-year low of 74.52 US cents and last stood at 74.8 cents.

London Copper was softer at US$5,583 a ton, not far from a five-month low of US$5,520 touched on Monday.

Oil prices also steadied after having suffered its biggest selloff in five months on Monday.

US crude fell 7.7 percent to a three-month low of US$52.41 a barrel and last stood at US$53.03, up 1 percent from late US levels.

Brent shed 6.3 percent and was last quoted at US$57.07, up 1.3 percent on the day.

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