HONG KONG (Reuters) - Asian equities Gravis a fifth consecutive session Monday, led by stocks of Chinese, even if the euro turned weaker after the S & P rating agency has warned that any overthrow of the Greek debt would be a default value.
After two weeks of gains, shares were a sound basis as fears eased on a sudden slowdown of new giants of the market such as China and a drop in prices of raw materials as oil has stimulated the demand for assets at risk after a rocky first half.
A merchant broker based in Hong Kong said long-only buyers were stepping back on the market, signaling a shift from the previous quarter where the institutions have been in large part on the key and trading volumes on exchanges major remains anemic.
The Shanghai composite index, which is still down at beginning of the year, rose 1.6% Monday (.)(Growth of the production of the SSEC) after data last week showed China moderated in June, raising expectations that the economy cannot go into a sudden slowdown due to the excessive tight monetary policy.
A macro of the United States-based fund was also spotted buying in Chinese banks - a sector often regarded as a proxy for the economy and has a relatively large weight to lift the broader market.
China Enterprises index (.)(Ft) of the continent top companies listed in Hong Kong, the most common way for investors to invest in China, have increased by 2.2 per cent.
"There is a significant multiple contraction in terms of PE (price-earnings), which means that the market (China) is emblematic of the overall market in the region well," said Jonathan Garner, head of the global strategy of Morgan Stanley emerging markets.
"If we expect China better both in terms absolute and relative in the second half," he said, adding that the Bank is overweight on materials, energy and financial sectors.
Although global PMIs tempered, the underlying trends of investment remain strong and inflation is set to ease in the second half, following a moderation of economic activity, said Merrill Lynch strategists.
They hope that China the economy to grow by more than 9% in 2011 - much higher growth scenario of so-called "landing" of about 7%.
Offers yet another ray of prudent optimism of spirit investors a lot of U.S. data offers the most large economy in the world may strongly recover a recent period of weakness in the manufacturing.
The Japan Nikkei (.)(N225) ends one percent, briefly rising above the level of 10,000 points for the first time in two months, while as Australian stocks (.)(AXJO) gained 0.4%.
The MSCI index of the actions of the Asia-Pacific out of Japan (.)(MIAPJ0000PUS) has increased by 1.2%, reaching its highest level since early June, addition of two consecutive weeks of gains.
Thailand, the stronger baht and local actions (.)(SETI) has acquired more than 4 per cent after the clear majority obtained by the Puea Thai Party suggests that the possibility of post-election instability seemed less likely in the short term.
Data flow has painted a cheerful picture. Global followed EPFR emerging capital markets snap an outgoing head of her streak three weeks in July with the Zentaris Asia and diversified fund global emerging markets (GEM) both taking in more than a billion dollars then that outputs high-yield bond funds slow down.
U.S. markets are closed Monday for a holiday.
EURO WEAKENS
The euro erased gains at the beginning and held near lows of the day after the rating agency S & P said that a debt rollover plan could put the Greece in selective default. The single currency reached a maximum of one month of $1.4580 earlier in the day.
In addition, although the last disbursement of emergency calm investors nervous at the moment, Greece faces a daunting task to try to implement reforms demanded by the international donors which means the path of the euro is going to be rocky.
In General, it is remained hemmed in a broad range since early May.
Saturday euro-zone Finance Ministers approved a payment of the Greece rescue EUR 12 billion and said details of a second package help for Athens would be finalized mid-September.
For now, markets will focus on European Central Bank policy rate decision Thursday where he is supposed to largely its interest rates, even if the players will be more interested in whether the tendency of the rate increases, especially in the context of weak data from the Germany.
Improved appetite for risk and the end of the policy of quantitative easing of the Federal Reserve has reduced demand for US Treasury bonds, yields on 10-year notes moved to 3.18%, near its top for almost two months and adding a weekly increase of more than 30 basis points.
Future gross U.S. traded above the $95 per barrel mark, maintaining the gains of last week, despite a surprise reserves of displacement by the 28-nation International Energy Agency to release 60 million barrels of oil.
Moreover, precious metals like gold and silver won the meagre gains in thin trading.
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