Asia stocks up as Greece clears bailout hurdle

Source: AFF, 30 June 2011

Asian markets advanced Friday as investors took heart from debt-strapped Greece's approval of harsh austerity measures required for it to receive further emergency loans. Oil prices dipped below $95 per barrel after China reported manufacturing rose at the slowest pace in over two years in June, while the dollar strengthened against the euro but slipped against the yen. Mainland Chinese shares rose after a report showed a further slowing in manufacturing in June, news suggesting the economy is cooling and alleviating concern over fresh monetary tightening measures to combat inflation.

The gains came after Greek lawmakers passed a cost-cutting bill that had to be approved before international lenders would release $17 billion in rescue funds. Greece needs the money to avoid a default on its debt that could disrupt financial markets and bring on a wider European crisis. On Wall Street, traders were also reassured by the encouraging report by a trade group that manufacturing in Chicago quickened unexpectedly in June. Analysts had forecast a decline.The Dow rose 1.3 percent to 12,414.34. The S&P 500 added 1 percent to 1,320.64. The Nasdaq composite gained 1.2 percent to 2,773.52.