Asia markets rebound as Greece backs pro bailout party

Published:  18 Jun at 6 PM

Markets in Asia have gone up after pro-bailout parties in Greece gained power following the Sunday elections. The New Democracy party, which finished first, has supported the two bailouts of the country by the International Monetary Fund (IMF) and the European Union (EU).

Previously, there had been worries that if the anti-bailout Syriza had gain power, Greece may have been kicked off the euro.

Meanwhile, Australia's ASX 200 went up 1.5 percent, while Japan's Nikkei 225 index added 1.8 percent, and South Korea's Kospi increased by 2.1 percent..

New Democracy leader Antonis Samaras said the Greek people had voted to stick to the European path and stay in the eurozone. The country’s place in the EU will not be placed in doubt and the “adventures” will end, he added.

The Greek elections were being closely observed by both eurozone leaders and investors all around the world. Greece, which is battling out a sovereign debt crisis, has already been given two financial bailouts during the last two years.

The country was given an initial deal worth 110 billion euros in 2010, before another one in 2011 worth 130 billion euros. However, the IMF and the EU have attached severe austerity measures, which include state spending reductions, as preconditions to the aid.

Various demonstrations have been staged against these cuts in Greece, as the Syriza group had announced its plans to renegotiate the preconditions if it rose to power.