• Tokyo investors await Europe summit on Greece


    TOKYO: Tokyo is the first major market to open Monday after a summit on Greece’s bailout, with investors also eyeing a recovery in Chinese stocks and the US Federal Reserve’s Beige Book report.

    “Greece will hold big sway over stocks next week,” said Hirokazu Kabeya, senior strategist at Daiwa Securities.

    Athens on Thursday laid out details of a new bailout plan to save it from financial collapse, offering a pensions overhaul and tax hikes in return for debt relief and a rescue loan from the eurozone.

    Eurozone officials are studying details of the plan before the full EU meeting Sunday that could determine whether Greece remains in the currency club.

    Expectations for a deal are running high, but the talks “may not necessarily turn out the way markets hope,” Kabeya cautioned.

    In China, markets rallied following a month-long rout that sparked a regional sell-off earlier this week, and fuelled fears about the impact on the world’s number two economy.

    Mainland stocks surged 4.54 percent on Friday, taking their two-day rise to more than 10 percent after the authorities put in place policies to avoid a market crash.

    However, trading in more than 1,300 shares remains suspended.

    “China has managed to stop its decline for now using all sorts of government tools. But once trading resumes in shares that had stopped trading, we’ll see more selling,” Mizuho Securities analyst Yutaka Miura told Bloomberg News.

    China releases a string of economic data next week including trade figures and economic growth data, and investors “will be watching how the real economy is faring now,” said Daiwa’s Kabeya.

    In the United States, the Federal Reserve puts out its Beige Book regional survey next week, which markets will pore over for clues about the likelihood of an interest rate hike this year.

    Fed chief Janet Yellen speaks to Congress on Thursday.

    The Bank of Japan kicks off a two-day policy meeting from Tuesday and will issue an updated outlook for the economy.



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