By
Pamela Sampson / AP Business Writer
June 11, 2012
June 11, 2012
BANGKOK—Asian stocks and the
euro climbed Monday after Spain sought a lifeline for its ailing banks,
easing fears that Europe's debt crisis was about to spin out of control.
Spain
on Saturday asked finance ministers from the 17 countries that use the
euro to rescue its banks, which have been crushed by bad real estate
loans. They responded by offering up to $100 billion euros ($125
billion) in credit that the Spanish government could funnel to banks.
Japan's
Nikkei 225 index jumped 1.9 percent to 8,622.58. South Korea's Kospi
added 1.6 percent to 2,553 and Hong Kong's Hang Seng climbed 2 percent
to 18,874.23.
Benchmarks in Singapore, Taiwan, mainland China, Indonesia and New Zealand also rose.
In currency trading, the euro rose to $1.2633 from $1.2507 late Friday in New York. It rose to 100.49 yen from 99.50 yen.
Adding
to the improved trading mood was better-than-expected data over the
weekend that showed China's exports jumped in May from a year earlier.
The
next key date for the euro currency union is Sunday, when Greek voters
head to the polls in an election likely to determine whether the
debt-mired country will stick with the common currency.
"Market
sentiment has improved on the back of the announcement of Spanish bank
aid and a less worrying set of numbers out of China over the weekend,"
analysts at Credit Agricole CIB in Hong Kong said in a market
commentary.
But the newfound sense of optimism in markets is likely to fade as the Greek election nears, they said.
Spain
is the fourth euro nation to seek a rescue. A financial crisis has
gripped Spain since 2008, when a real estate bust caused big losses for
many banks.
A Spanish bank
rescue fund set up in 2009 was running out of money, and the government
has already nationalized Bankia, a major bank. The rescue plan aims to
calm investors by taking bank losses out of the equation.
Benchmark
oil for July delivery was up $2.03 to $86.14 per barrel in electronic
trading on the New York Mercantile Exchange. The contract fell 72 cents
to end at $84.10 per barrel on the Nymex on Friday.
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