Markets throughout Asia had something of a spring in their step Monday, led mostly by advances in Shenzhen and Hong Kong.
In Tokyo, the Nikkei 225 index regrouped 309.94 points, or 1.6%, 20.089.77, after booking its sharpest weekly decline since mid-October last week.
In Hong Kong, the Hang Seng Index ballooned 322.73, or 1.3%, to 25,224.01, while a gauge of Chinese companies listed on the city’s stock exchange, known as H-shares, are up 1%.
Despite the gains, investors are cautious after four weeks of volatility. Trading suspensions remain a frustration for investors, who might otherwise have sold stocks for cash.
Euro-zone leaders hammered out a tentative rescue deal for Greece early Monday, saying they would give the country another bailout as long as the government of Prime Minister Alexis Tsipras manages to implement a round of strict austerity measures.
The euro was last at $ 1.1149 U.S, compared with $1.1162 U.S. late in New York on Friday, as Greece’s future in Europe’s currency union still hangs in the balance. The Japanese yen was at 122.92 against the U.S. dollar. The currency has been strengthening recently as investors seek haven assets.
CHINA
China shares led Asia higher Monday, as Beijing’s efforts to reverse a massive selloff appear to be holding up, though a number of stocks remain halted.
In China, the CSI 300 gained 105.26 points, or 2.6%, to 4,211.81
Some 303 firms have halted trading in Shanghai, and 883 in the smaller Shenzhen market, of the 2,873 stocks are listed on the two exchanges, according to FactSet. While that has come down from last week, it means only about half of the Chinese stock market rebounded strongly on Thursday and Friday.
Beijing’s set of direct and indirect government measures over the past several days — valued at more than a trillion yuan — includes tactics from buying shares to police warning traders against betting on share prices to fall. On Sunday, China’s securities regulator said it was ordering securities firms to monitor a rising number of illegal trading accounts: those opened on behalf of "institutions and individuals" other than those named on the account.
The mission to get more investors borrowing to buy stocks is also gaining steam. The amount of money borrowed from Chinese brokerages for stock investments increased to 1.44 trillion yuan ($231.83 billion U.S.) on Friday, marking the first increase since June 18 when margin financing peaked at 2.27 trillion yuan. Just weeks ago, before the selloff, regulators had targeted the practice for fueling a too-hot rally.
While the recent unraveling has cast doubt on the health of China’s broader economy, some say the relatively small size its stock market means a selloff doesn’t change the country’s economic picture. Despite a recent slowdown, China is still among the world’s fastest-growing economies.
On Monday, China reported rosier trade data ahead of its release of second-quarter growth figures later this week. Exports rose 2.8% in June from a year earlier in dollar terms, compared with a decline of 2.5% in May.
In other markets
In Taiwan, the Taiex index rocketed 119.79 points, or 1.3%, to 9,033.92
In Korea, the Kospi index moved up 30.35 points, or 0.2%, to 2,061.52
In Singapore, the Straits Times Index picked up 31.34 points, or 1%, to 3,311.22
The NZX 50 slipped 18.64 points, or 0.3%, to 5,706.70
The ASX 200 Index moved lower 18.87 points, or 0.3%, to 5,473.17
