Asian stocks were up today (July 14th) after Greece finally reached an agreement with its creditors after weeks of negotiations.
The country agreed a preliminary rescue deal with other European Union governments which is expected to prevent an imminent economic collapse in the nation.
Greece will receive as much as €86 billion euros (£61.3 billion) of aid if the country's parliament agrees by Wednesday to pass into law key creditor demands including changes to value-added taxes, broadening the tax base to increase revenue and reducing pension costs.
"Relief has set in that contagion from a Greek financial collapse has been avoided," Jasper Lawler, London-based market analyst at CMC Markets Plc, said in an e-mail seen by Bloomberg. "The avoidance of Greece's exit from the eurozone, at least for the time being, should be enough to encourage investment flows back."
Tokyo's Nikkei 225 jumped 1.5 per cent to 20,385.33 and Sydney's S&P/ASX 200 soared 1.9 per cent to 5,577.40. Seoul's Kospi edged down 0.1 per cent to 2,059.23. The Shanghai Composite Index dropped 1.2 per cent to 3,924.49 in volatile trading after rising earlier in the day. Hong Kong's Hang Seng fell 0.4 per cent to 25,120.91, and India's Sensex was up 0.1 per cent at 27,980.90.
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