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World stocks rise on Greek optimism

Posted June. 24, 2015 07:28,   

한국어

Major stock markets have risen across the board Tuesday as hopes are ripening for the Greek deal, which had weighed down the global financial markets.

Korea`s main stock index KOSPI rose 26.04 points (1.27 percent) to close at 2,081.20 on Tuesday. Continuing its rally for the fifth straight trading session, the KOSPI surged the most over the past two months.

The tech-heavy KOSDAQ Index rose 0.71 percent to 739.82, the highest in seven years and six months since 751.57 posted on December 6, 2007. Having rallied into fresh highs recently, KOSDAQ total market capitalization reached an all-time high 201 trillion won (182 billion U.S. dollars).

China`s Shanghai stock market rebounded 0.84 percent after plunging more than 13 percent last week, and the Japanese and Hong Kong markets rose 1.87 percent and 1.28 percent, respectively. On Monday (local time), the U.S. NASDAQ Index rose to a new high, and Germany and France surged by nearly 4 percent. The Greek stock market surged 9 percent.

The global stock rally attributes to prospects that the Greek bailout agreement is imminent after a five-month standoff, which eased the country`s default risks. EU creditors assessed new proposals submitted by Greece, raising expectations that a final agreement would come later this week.

IBK Investment Securities research center head Lee Jong-woo said, "The KOSPI is again at a starting line for a rise, as external adverse factors such as U.S. rate hike and Greek default concerns were relieved while the MERS fear subdued."

However, domestic demand is expected to shrink due to the MERS incident while second quarter corporate earnings are also projected to remain sluggish. Moreover, even if the bailout agreement is reached, Greece`s fundamental debt problem can`t be resolved, which means uncertainty stemming from Greece will prevail. Samsung Securities analyst Kim Yong-koo said, "Whether the KOSPI can remain stable at the 2,100 level or fall again to hover within a band will be decided following the economic stimulus measures including the supplementary budget plan that will soon be announced by the government."



imsoo@donga.com