Winning a confidence of vote did not only take Greece Prime Minister George Papandreou a step closer to avoiding a default and pushing through austerity measures but it also resulted to a jump in the Asian stock markets.
Tokyo’s stock market rose by 1.79 percent to 9,629.43 while Seoul’s stock market closed 0.77 percent higher at 2,063.90. Shanghai’s stock market rose by 0.11 percent while Hong Kong rose by 0.69 percent.
The presence of up to 4,000 angry demonstrators outside the parliament did not deter Papandreou to mobilize his thin mobility to win a vote needed to “avoid bankruptcy and keep Greece in the euro core” hours before the opening of the Asian markets.
With this victory, Athens now has two weeks to convince the other European countries that it is bent on implementing privatizations and long-delayed structural reforms to get the much-needed bailout money before July when its funds run out. A 12-billion euro loan installment is needed by Greece next month to pay its bills.
Greece was issued an ultimatum by the eurozone Monday by holding back the $160-billion rescue loan package agree upon last year. The Greek lawmakers were told to support the government and approve budget cuts without delay which could increase the pressure.
However, Athens needs a much-bigger 100-billion-euro second loan package to avoid defaulting on its debt in the coming months and years.
“The Greece situation in recent days has at least shown signs of progression rather than stagnation,” said Tim Waterer, senior currency Dealer at CMC Markets in Sydney, according to Dow Jones Newswires.
“The march higher in equities… provided some comfort to a market which is desperate to latch onto any hint of good news,” he said.