Asia stocks advance after Greek austerity vote

SYDNEY (MarketWatch) � Asian markets gained Monday after Greek lawmakers voted in favor of austerity measures required to secure bailout funds and avert a likely default.

Japan�s Nikkei Stock Average JP:100000018 and South Korea�s Kospi KR:SEU �each closed 0.6% higher, while Australia�s S&P/ASX 200 index AU:XJO �advanced 0.9%.

Hong Kong�s Hang Seng Index HK:HSI �rose 0.5%, while the Shanghai Composite Index CN:000001 �lagged the advance to finish flat as property stocks sold down.

Broad gains for Asia on Monday followed news that Greek lawmakers approved a package of austerity measures which international backers had demanded before signing off on 130 billion euros ($176.6 billion) worth of fresh aid.

The vote came amid violent protests in Athens against the latest round of deep spending cuts and public-sector job layoffs. Read more on the Greek austerity vote.

�Approval by the Greek parliament of fresh austerity measures overnight will be greeted with relief by markets. However, the approval did not come without major cost in the form of escalating protests and violence within Greece,� said Mitul Kotecha, strategist at Credit Agricole.

Click to Play Greek police dodge Molotovs, stones

Police dodge gasoline bombs and stones as rage over a new austerity deal exploded in Athens over the weekend. (Video: Reuters/Photo: Getty Images)

�Greek worries have not managed to damage risk appetite too much, helped by relatively positive data releases and central-bank policy actions over recent weeks. This week�s U.S. data releases will help to sustain this momentum,� Kotecha said.

Select Asian exporters with relatively large exposure to Europe did well in Monday trading.

In Tokyo, Mazda Motor Corp.JP:7261 �put on 1.4%, and Mitsubishi Motors Corp. JP:7211 �MSBHY �added 2.1%, while Esprit Holdings Ltd. HK:330 �ESHDF �climbed 4.5% in Hong Kong.

Notable movers on the Japanese bourse included Softbank Corp. JP:9984 �SFTBY , which rallied 3.5% following a Nikkei news report that the firm was likely to win new spectrum.

Tokyo-listed shares generally shrugged off data showing Japan�s economy contracted by a larger-than-expected margin in the last quarter of 2011. See report on Japanese economic data.

In Hong Kong, insurers were among the leading advancers. Ping An Insurance Group Co. HK:2318 �PNGAY �rose 2.2%, while AIA Group Ltd. HK:1299 �AAIGF �added 1.9%.

However, news that the eastern Chinese city of Wuhu reversed plans to lift home-buying restrictions in effect across much of the country hit mainland Chinese property names. See report on Wuhu�s policy rollback.

In Hong Kong, China Resources Land Ltd. HK:1109 �CRBJF �finished down 5.8%, Agile Property Holdings Ltd. HK:3383 AGPYY �plunged 6.6%, Evergrande Real Estate Group Ltd. HK:3333 �EGRNF �surrendered 6.9%, and China Overseas Land & Investment Ltd. HK:688 �CAOVF �dropped 4.8%.

In Shanghai, Gemdale Corp. CN:600383 �fell 2.9%, and Poly Real Estate Group Co. CN:600048 �lost 3.1%.

Most major exporter shares did well in Seoul, as Samsung Electronics Co. SSNGY �gained 2%, while Kia Motors Corp. KIMTF �jumped 3.6%, and LG Display Co. LPL �climbed 2.6%.

In Sydney, banks advanced with Australia & New Zealand Banking Group Ltd. AU:WBC �WEBNF �finishing 1.6% higher after the lender announced it would cut 1,000 jobs in Australia. See report on ANZ job cuts.

Elsewhere in the sector, Macquarie Group Ltd. AU:MQG �MCQEF � improved by 1.2%, while Westpac Banking Corp. AU:WBC �WEBNF �and National Australia Bank Ltd. AU:NAB � NAUBF �each rose 1.4%,

Shares in Leighton Holdings Ltd. AU:LEI �LGTHF �fell 2% after the construction firm said one of its subsidiaries was being investigated by the Australian Federal Police for a potential ethical breach.