Asian markets rise after US stocks rally

Asian markets rose on Monday after better-than-expected US manufacturing data sent Wall Street stocks rallying, while traders' concerns over Greece's sovereign debt have eased. The euro climbed to its highest point in nearly a month against the dollar in early trade as fears over a possible default by Athens made way for expectations of a rate hike by the European Central Bank (ECB) this week. However, traders were given a spook in the afternoon when ratings agency Standard & Poor's warned that plans to roll over Greece's debt could amount to a default. Tokyo jumped 0.98 percent, or 97.02 points, to 9,965.09 and Seoul closed 0.92 percent, or 19.56 points, higher at 2,145.30 while Sydney gained 0.42 percent, or 19.5 points, to 4,610.7. Hong Kong closed 1.66 percent, or 372.37 points, higher at 22,770.47 and Shanghai surged 1.94 percent, or 53.46 points, to 2,812.82. Thai shares rose 4.69 percent, or 48.80 points, to 1,090.28 after the opposition Puea Thai party, led by the sister of former prime minister Thaksin Shinawatra, won a huge and decisive election victory on Sunday. Investors were meanwhile buoyed by Friday's release in the United States of the ISM purchasing managers index for the manufacturing sector for June, which climbed 1.8 percent from May -- much better than economists had forecast. On Wall Street the Dow rose 1.36 percent, the S&P 500 gained 1.44 percent and the tech-heavy Nasdaq was up 1.53 percent. The big gains follow extended losses during most of the past month amid concerns that the US economic recovery was losing steam while the Greek debt crisis appeared to threaten another global financial slump. "Sentiment has not turned immediately bullish, but it seems like the recent US slowdown was a result of temporary factors such as disruptions in Japan's supply chain (after the March 11 quake) and higher gasoline prices," said Cosmo Securities strategist Toshikazu Horiuchi. The euro shot up to $1.4580 in early Tokyo trade, its highest since June 9, after eurozone finance ministers cleared the way Saturday for Greece to receive urgent funds to avoid imminent bankruptcy. The single currency eased to $1.4534 in the morning, against $1.4522 in New York late Friday. It also edged down to 117.15 yen from 117.40 yen. "An optimistic mood had been spreading since the Greek parliament last week passed the vote" for an austerity package vital to Greece receiving additional rescue funds, said Gen Kawabe, dealer at Chuo Mitsui Trust and Banking. "We never know what could happen in the medium to long term, but concern over a possible Greek default has diminished at least for the near term," Kawabe said. Also lifting the unit were forecasts that the ECB will raise interest rates by 0.25 percentage points at its policy meeting on Thursday. Traders are also closely watching comments from the bank's officials about the state of the economy for clues as to whether there will be another hike in August. The dollar edged down to 80.59 yen against 80.81 yen. Share and forex markets softened their gains after S&P's statement that two financing options put forward to help fund another bailout for Greece "would likely amount to a default under our criteria". The "debt rollover proposal could result in a selective default for Greece," it said. In Sydney, Qantas jumped 6.2 percent after engineers cancelled industrial action and Australia's airline safety regulator grounded Tiger Airways Australia flights for a week over safety concerns. On oil markets, New York's main contract, West Texas Intermediate for August delivery, rose 12 cents to $95.07 a barrel and Brent North Sea crude for August added 18 cents to $111.95. Gold closed at $1,494.00-$1,495.00 an ounce in Hong Kong, down from $1,500.00-$1,501.00 on Friday.