Markets Turn Green after Greek Election Results
Asian markets turned green while the Euro surged to a shortlived one-month high against the dollar on Monday in the wake of the Greek election results.
Global markets were equally upbeat since the Greeks have chosen the pro-bailout New Democracy.
Japan's Nikkei, Hong Kong's Hang Seng and South Korea's Kospi rose by 1.8 percent, 1.5 percent and 2.1 percent respectively. China Shanghai Composite was up 0.7 percent.
As the fear of Greece's immediate exit from the single currency bloc recedes, the Euro surged to $1.2748, settling down to $1.2684.
Analysts are cautious of the current situation and warn the rise could be shortlived, as there are more bumpy paths ahead for investors.
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"Even on the optimistic scenario of New Democracy forming a workable coalition in the coming days, there are tough times ahead. Greece has been without a fully functioning government for over two months now, so there is much to catch-up on. Furthermore, the New Democracy leader Samaras has made clear his intention to gain further concessions from the troika on the current bailout deal, such as securing measures to support growth," Reuters reported the chief economist at FxPro, Simon Smith as saying.
Both Brent and US Crude also saw a significant rise. While the former surged 99 cents a barrel to $98.60, the latter jumped 74 cents and touched $84.77 a barrel.
"This is what the market wants to hear. The market doesn't want to hear that they're going to have another election and we'll have another period of limbo," Quincy Krosby, market strategist at Prudential Financial was quoted by Wall Street Journal.
However, the new coalition government in Greece which is yet to be formed will have a mammoth task ahead of it in carrying out economic reforms.
The economic situation in Spain and Italy has also been a regular cause of concern for the financial markets.
This article is copyrighted by IBTimes.co.uk, the business news leader