Asian markets rally on favourable Greek election outcome

Buoyed by favourable outcome from Greek election, sentiment in the Asian region continued their bullish run with all the equity indices snapping the day’s trade in the positive terrain on Monday. Greek polls provided hopes that Greece will stay in euro-zone after New Democracy emerged as the largest party with around 30 percent vote share followed by Syriza party with 27 percent vote share. Socialist PASOK won over around 13 percent. Moreover, investors are keenly awaiting the outcomes of US Federal Reserve meeting and G20 summit this week and a European Union leaders summit later this month, which would give markets further direction.

Meanwhile, the results of Greece election were welcomed by the governments of Japan and China -- two of Europe’s biggest creditors -- which called for leaders in Greece to act quickly to form a cabinet. The benchmarks of the country jumped 1.77 percent and 0.40 percent respectively. In addition, Taiwan stocks rose 1.76 percent on Monday, joining other Asian bourses in rallying after Greece’s election result calmed fears of global financial turmoil, with tech stocks leading gains at the expense of defensives such as steel and plastics.