Asian stocks ended mostly higher on a rebound by Chinese stocks and increased optimism that Greece and its lenders would reach an agreement on a possible bailout deal.
The MSCI Asia-Pacific Index edged up by 0.5% to 141.38 at the end of trading in Hong Kong. The index was however still set for a 3.5% decline for the week.
In mainland China, the benchmark Shanghai Composite index jumped by 169 points or 4.6% to end the week at 3878.94 points.
“Signs that the proposal Greece has put together has concessions on longstanding issues and is similar to tabled proposals is reducing risk aversion,” Sam Tuck, a senior currency strategist in Auckland at ANZ Bank New Zealand Ltd., told Bloomberg by instant message.
“The fact that China managed to close up across the board has certainly reduced market fear, but it’s still very much in the forefront of people’s minds.”
The Greek government on Friday presented its proposed concessions to its international lenders with most market analysts expecting the proposals to pave the way for a potential bailout deal.
Most of the concessions in the list agreed with the austerity measures in the European Union’s cash for reforms deal that was rejected by the Greek public last week.
Most of the lenders have also voiced their openness to discuss how to ease the country’s debt load with Greece hoping to get $59 billion from its lenders to cover its debts up to 2019.
“Greece’s proposal to its European creditors appears to significantly improve the prospects for a weekend agreement on extending further credit,” Ric Spooner, chief market analyst at CMC Markets, told Fox Business.
Also aiding the rally in Asian stocks was a rebound by Chinese stocks to six year highs after Beijing put into place measures to halt the slide in the country’s stocks after weeks of gyrations.
The benchmark Chinese Shanghai Composite index has plummeted by more than 30% since its June 12th peak erasing more than $3.9 trillion in equities for the period and increasing the need for supportive measures.
To contact the reporter of the story: Samuel Rae at firstname.lastname@example.org