Asian equities rose on Thursday after the Greek parliament voted in favor of a new bailout plan, but Chinese market volatility remained a worry.
Lawmakers in Athens passed strict austerity measures needed to secure a debt deal from its creditors early Thursday morning local time, two hours after the official deadline. However, politicians from within Prime Minister Alexis Tsipras’ ruling Syrzia party opposed the conditions outlined in Monday’s deal, which include tax increases and spending cuts, sparking concerns of internal political strife. The vote comes ahead of Monday’s payment to the European Central Bank (ECB).
Attention now falls on the ECB’s rates decision later on Thursday, with President Mario Draghi likely to face questions on a decision on Emergency Liquidity Assistance (ELA) for Greece. The ELA is a program of emergency loans for Greek lenders to keep them solvent and now that the Greek parliament has approved the necessary reforms, the central bank is widely expected to increase funding.