Asian stocks rose in early trading after European markets
stabilized on Wednesday as investor confidence recovered despite
the absence of progress in debt talks between Greece and its
creditors.
Greece will hold a referendum Sunday to decide whether to accept
creditors' demands—a vote that effectively is over whether the
country should stay in the eurozone.
"If it's Armageddon, the markets seem oblivious to it and
despite some risk aversion there's hardly any panic," analysts from
Socié té Gé né rale wrote in a research report. "Some assets are
even gaining ground against the odds."
Japan's Nikkei 225 Stock Average rose 1.3%, while Australia's
S&P/ASX 200 index gained 0.7%. South Korea's Kospi Composite
was up 0.2%. The euro was flat against the dollar at $1.1044.
China took another step to stabilize its plunging stock markets
after a fresh selloff on Wednesday, as the Shanghai and Shenzhen
stock exchanges lowered fees on securities transactions, the
official Xinhua News Agency reported. Both the Shanghai Composite
and the Shenzhen Composite are down more than 20% from recent
highs. Hong Kong's market reopens Thursday after a public holiday
on Wednesday.
Late Wednesday, the China Securities Regulatory Commission
amended rules governing how investors are allowed to borrow to fund
their stock purchases. Much of the increase in stock prices has
been fueled by so-called margin trading. The CSRC abolished
regulations that forced brokers to recall loans of customers whose
leverage exceeds maximum levels, allowing brokers instead to
negotiate rollovers of loans directly with clients, Xinhua
reported.
"The CSRC announcement will bring forward the point at which
sufficient leverage has been bled out of the system for the rally
to resume," analysts from ING wrote in a research report.
Write to Gregor Stuart Hunter at gregor.hunter@wsj.com
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