Euro zone ministers back second $170 billion bailout for Greece

Euro zone finance ministers backed a second bailout for Greece of $170 billion yesterday in Brussels, pending a $36.7 billion contribution from the International Monetary Fund. Continued confidence in Greece’s ability to address its debt woes helped boost markets across Europe and Asia during Tuesday trading.

By midday, London’s FTSE had risen 0.85%, the German DAX had surged 1.00% and the French CAC 40 had appreciated 1.10%. The euro slipped 0.42% to $1.3093 and the British pound appreciated 0.13% to $1.5652.

Overnight, the Shanghai Composite (YAOquote) rose 0.86%. The United States, the European Union and Japan are filing a joint complaint with the World Trade Organization against China’s quotas on the export of rare earths, which are critical for the manufacturing of many high-tech products.

China produces 95% of the world’s rare earths and the United States, European Union and Japan argue that limiting exports is driving up prices.

The Nikkei (EWJquote) got a bump of 0.09%. Japan has been given the go-ahead to purchase $10 billion worth of yuan-denominated Chinese government bonds. The move is China’s latest attempt to turn its currency into an alternative global reserve currency to the U.S. dollar.

Japanese exporters were mixed during Tuesday trading, with shares of Sony falling 0.76% and Panasonic stock jumping 1.22%

Seoul’s KOSPI (EWYquote) got a boost of 1.13%. South Korean electronics firms Samsung and LG rose 0.91% and 0.11%, respectively.

Meanwhile, Australian stocks (EWAquote) climbed 1.13% and in Singapore, shares (EWS, quote) were up 0.91%.

The Chinese yuan rose 0.02% to 6.3271 to the dollar, while the Japanese yen appreciated 0.49% to 82.70.

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