Hong Kong jumps 3.31 per cent but all Asian shares gain after Greek PM Papandreou drops vote on austerity measures. Although the situation remains volatile, there is renewed optimism about the European Union’s willingness and capacity to recover.

Hong Kong (AsiaNews/Agencies) – Asian markets rose today after Greek Prime Minister George Papandreou backed away from his plan for a national vote on last week's eurozone rescue package, which is designed to prevent Greece’s default but at the cost of tough austerity measures.

Hong Kong jumped 3.31 per cent, Tokyo was 1.21 per cent higher, Sydney surged 2.53 per cent and Seoul added 2.88 per cent. Shanghai gained only 0.78 per cent, but continues its rebound after the Chinese government announced a new macroeconomic policy following a slowdown in industrial output last month.

Asian markets appear confident that the European Union will be able to overcome the debt crisis of some of its members, welcoming the decision of the European Central Bank to cut interest rates by a quarter of a point.

Greece’s decision not to go ahead with a vote on the rescue package, following talks between Mr Papandreou and his EU colleagues, was welcomed as a sign of the European Union’s willingness to implement its rescue plan, something EU leaders reiterated at the G20 in Cannes.

This can still change however, since Papandreou faces a confidence vote in parliament.

• asia
• european
• union
• cannes
• g20
• papandreou
• greece