World stock markets rise on Greece optimism
BEIJING - Global stocks rose Tuesday on optimism over Greek debt talks and signs of stabilization in China's manufacturing industries.
Germany's DAX rose 1.1 percent to 11,583.65 and France's CAC-40 gained 0.8 percent to 5,050.22. Britain's FTSE 100 was up 0.3 percent to 6,845.90. The advances followed big gains on Monday. Wall Street looked poised for another up day, with the future for the S&P 500 and Dow up 0.2 percent.
Greece offered economic reforms that its European creditors consider closer to being acceptable. At a meeting Monday, leaders of the 19 nations that use the euro currency said the offer by the government of Prime Minister Alexis Tsipras might form a basis to break a four-month deadlock. The Greek stock market surged by 9 percent. Still, the two sides failed to reach a deal that might get Athens new loans at a time when its reserves of cash are running low.
A survey by HSBC Corp. found Chinese manufacturing improved in June but still was contracting. Output and new orders rose and improved export orders suggested foreign demand might be recovering. That suggests the economy "has started to find its footing," said Capital Economics in a report.
European leaders are "discussing tactics, ploys, tricks and other ruses to avoid a hard default by Greece," said Carl B. Weinberg of High Frequency Economics in a report. "What is not addressed in any way is the longer term uncomfortable truth that Greece cannot service the debt that it has undertaken."
The Shanghai Composite Index rose 2.2 percent to 4,576.49 and Tokyo's Nikkei 225 rose 1.9 percent to 20,809.42. Seoul's Kospi was up 1.3 percent at 2,081.20. Sydney's S&P/ASX 200 advanced 1.3 percent to 5,684.30 and Hong Kong's Hang Seng added 0.9 percent to 27,333.46. Taiwan, Singapore, Malaysia and Bangkok also rose while New Zealand and Manila fell.
Benchmark U.S. crude shed 31 cents to $60.07 per barrel in electronic trading on the New York Mercantile Exchange. The contract added 41 cents on Monday to close at $60.38. Brent crude, used to price international oils, declined 8 cents to $63.26 after adding 32 cents the previous session to $63.34.
The dollar rose to 123.62 yen from Monday's 123.39 yen. The euro declined to $1.12 from the previous session's $1.13.