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Summary The single currency jumped around half a cent after announcement of 130bn euros rescue package.
The euro jumped andAsian stocks pared losses on Tuesday after euro zone policymakers agreed to a second bailout package for Greece in marathontalks that went deep into the Brussels night.The single currency jumped around half a cent after eurozone finance ministers approved a 130-billion-euro rescue, withstrict conditions, that averts an imminent default by Athens.Reaction from share and commodity markets, which had ralliedin recent days on hopes of an agreement on Greece combined withan easing of monetary policy by China, was more muted.The Greece bailout agreement has already been priced in bythe market, said Yoshihiko Tabei, chief analyst of capitalmarkets at Kazaka Securities, before the announcement.MSCIs broadest index of Asia Pacific shares outside Japanpared losses to stand down 0.1 percent after twoEuropean Union officials told Reuters an agreement had beenreached.Tokyos Nikkei share average was also 0.1 percentlower at the mid-session break.Both indexes have started 2012 strongly, with the MSCIbenchmark up 13.5 percent and the Nikkei up 12 percent for theyear-to-date, outperforming an 8 percent rise in Wall StreetsS&P 500.The euro raced up 0.3 percent to around $1.3285,having been down around 0.3 percent before the deal.In commodity markets, Brent crude futures hovered near $120a barrel after reaching an 8-month high on Monday, partly drivenby Irans cutting off of oil exports to Britain and France.Copper, which had posted strong gains onexpectations of more lending for infrastructure projects inChina after the central banks weekend move to loosen monetarypolicy, gained another 1.5 percent to around $8,360 a tonne.Gold edged up to around $1,735 an ounce.
