China’s shares reversed a recent sharp selloff, as investors elsewhere in Asia push off concerns about a default in Greece until the outcome of a referendum next Sunday.
In Tokyo, the Nikkei 225 index regained 125.78 points, or 0.6%, to 20,235.73
The euro fell 0.5% to 1.1162 against the U.S. dollar, but was down 0.8% against the Japanese yen in Asian trade as investors seek safer assets.
In Hong Kong, the Hang Seng Index recovered 283.05 points, or 1.1%, to 26,250.03
Elsewhere in Asia, investors seemed encouraged that Greece would vote in favour of accepting a bailout from creditors in a referendum next Sunday, reducing the possibility of an exit from the euro-zone, said one expert. Greece is set to default on a €1.55-billion ($1.73-billion U.S.) loan due to the International Monetary Fund on Tuesday.
CHINA
In China, the CSI 300 moved up 281.45 points, or 6.7%, to 4,473
Tuesday’s moves pull the benchmark from losses a day earlier that ended in bear-market territory, defined as a fall of 20% from a high.
Despite that rout, China’s main benchmark is up 14% for the second quarter, and has more than doubled over the past year.
Chinese authorities have tried to draw a line under the declines, efforts that could be starting to restore investors’ confidence. The central bank cut interest rates over the weekend and late Monday the Finance Ministry announced that the state’s pension fund could be allowed to invest up to 30% of its net asset value in securities.
Still, measures by Chinese authorities to restore stability to the market could struggle to take root, experts say.
In other markets
The Taiex index in Taiwan tallied 86.92 points, or 0.9%, to 9,323.02
In Korea, the Kospi index gained 13.71 points, or 0.7%, to 2,074.20
In Singapore, the Straits Times Index took on 37.15 points, or 1.1%, to 3,317.33
The NZX 50 added 21.15 points, or 0.4%, to 5,726.96
The ASX 200 Index regained 36.52 points, or 0.7%, to 5,459.01
