Asian Equities Higher on Greece Hopes

Asian stocks rose on Tuesday amid hopes a deal could be finally be reached to avert a Greek default, but the rout in China continued despite data showing slight improvements in the country’s massive manufacturing sector.

China’s flash HSBC/Markit purchasing managers index (PMI) rose to 49.6 in June, beating Reuters’ expectations for 49.4, but it still remained in contraction territory. In May, the final HSBC PMI print stayed in contraction territory for a third month at 49.2. The official PMI came in at 50.2 last month.

Meanwhile, European officials said they expect to see Greece agree to a deal by Wednesday evening, with an announcement expected Thursday morning. The comments came after the European Central Bank (ECB) raised Greece’s emergency funding for its banks for the third time in a week, and officials held crunch talks in a bid to prevent the cash-strapped country from defaulting on its debt.