Asian stocks rise over Euro Greece assurance
Now that there's no longer a real chance of Greece getting the boot from the eurozone, jittery international markets have stopped falling.
German Chancellor Angela Merkel and French President Nicolas Sarkozy gathered from an emergency teleconference aimed specifically at calming markets on Wednesday, where they tried to temper talks of any potential Greek default on its debt. The two leaders described Greece as an "integral" part of the eurozone.
Bloomberg News reports that Asian markets rallied on the news.
Tim Schroeders, who helps manage $1 billion in equities at Pengana Capital Ltd. in Melbourne, told Bloomberg News: "Germany and France's commitment to continue supporting Greece's European Union membership diminishes the likelihood that it will be allowed to default. If Greece avoids default, it lessens any flow-on impact through the global banking system, which in turn is positive for Asian stocks."
Greek, French, German leaders talk Greek crisisJapan's Nikkei 225 Stock Average climbed 1.5 percent, Bloomberg reports. South Kirea's Kospi Index rose 1.5 percent and Australia's S&P/ASX 200 Index advanced 1.5 percent in Sydney. Hong Kong's Hang Seng Index added 0.5 percent.
Europe's big trading partners - the U.S. and China - have made clear they want the crisis contained.
China's Premier Wen Jiabao said European countries needed to tackle their debt problems and make changes to help restore global financial stability and steady economic growth. Beijing has shown interest in helping financially troubled European countries by investing or buying their bonds.
"Countries must first put their own house in order," Wen said.