Asian stocks won a reprieve on Tuesday after sharp falls the previous day but investors remained on edge amid uncertainty over Greece’s position in the euro and volatility in mainland Chinese equity markets. Chinese shares dropped almost two percent in early trading, reversing much of gains made on Monday following unprecedented steps to stabilise a plummeting market.
Japan’s Nikkei .N225 rose 1.2 percent while MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS, which fell to six-month low on Monday, was up 0.3 percent. European and U.S. stocks fell on Monday after Greeks voted overwhelmingly to reject more austerity. However, despite the huge uncertainty stemming from the Greek saga, most markets were relatively becalmed following the initial selloffs.
The euro also rebounded from Monday’s one-week low to fetch $1.1044 EUR. For now investors are holding out hope that Greece will manage to strike a deal with its creditors and prevent an exit from the euro zone.