Pressure off Cyprus – Asia stocks gain momentum

Northern, WI 03/25/2013 (avauncer) - EU has come to the rescue of a collapsing Cyprus and the Asian stock markets are rejoicing. The country was in the throes of a financial calamity and was hanging on the cliff of bankruptcy. What Cyprus will have to give up in return for the bailout is its second largest bank. It will be downing shutters on the bank to raise its own $5.8 billion euros. The bank will go through extensive restructuring and the bond-holders and main lenders of the bank will have to bear losses to the tune of 100,000. The fog over the future of other big banks in the country has not yet been lifted.

All round gain
17 European country Finance ministers in a late night meeting literally yanked the drowning country out of turbulent financial waters by sanctioning $12.9 billion aid in the nick of time. Crucial emergency assistance that was being provided by the European Central bank was to be pulled out sans an agreement on Tuesday. With this move, Cyprus will now be moving back into the safe zone. There was a chain reaction of gains across Asian stock markets after the news broke out. The Japanese Nikkei 225 index moved up to 12,504.37 by 1.4 percent. The Hong Kong Hang Seng rose to 22,210.51 up 0.5 percent. The South Korean Kospi got a boost of 1.4 percent and touched 1,975.08 while Australia’s S&P touched 4,994.10 after a 0.5percent rise. Amongst currencies, the euro went up from $1.2983 to $1.3024 and the dollar moved up from 94.48 yen to 94.80 yen.