Hong Kong – Most Asian markets rose for a second day on Friday after Greece submitted new debt reform plans and fears over a Chinese rout subsided as Shanghai stocks surged again.

The euro edged higher as investors bet that Athens’ new proposals will be enough to placate its creditors and get the green light at a European Union summit at the weekend.

Shanghai rallied 168.47 points, to 3 877.80 after surging almost 6% on Thursday as Chinese authorities beefed up measures to staunch a sell-off that has wiped trillions off mainland markets. The index ended a roller-coaster week 5.18% higher.

The gains came after China moved to stop “major” shareholders – those holding at least a five percent stake – from selling their stocks and launched a probe into short-selling in a bid to calm markets.

Short-selling is the selling of stock a trader does not own, in anticipation of a future fall in prices.

Hong Kong rose 508.49 points to 24 901.28, adding to a near 4% advance in the previous session.

Sydney added 21.0 points, to 5 492.0 and Seoul put on 3.36 points to 2 031.17.

But Tokyo lost 75.67 points to end at 19 779.83, giving up early gains.

Traders regained some risk sentiment on Friday, at the end of a week of tumult caused by a Greek referendum against austerity and a precipitous fall in China that fuelled concerns about the world’s second biggest economy.

Hopes that Greece will remain in the eurozone were boosted after the government laid out details of a new bailout plan offering a pensions overhaul and tax hikes in return for debt relief and a rescue loan.

The package closely resembled an offer put forward by creditors before talks broke down last month.

However, there was no immediate word on whether it would be enough to put an end to the five-month crisis.

Eurozone officials will now study details of the package Saturday, a day before the summit, which will come a week after Greeks overwhelmingly voted to reject a fresh bailout package offered by the country’s creditor institutions.

“Signs that the proposal Greece has put together has concessions on long-standing issues and is similar to tabled proposals is reducing risk aversion,” Sam Tuck, a senior currency strategist in Auckland at ANZ Bank New Zealand, told Bloomberg News.

Greece hopes boost euro

Currency markets welcomed the news, pushing the euro up to $1.1111 and ¥135.72 from $1.1035 and ¥133.88 in New York late on Thursday.

The dollar rose to ¥122.17 from ¥121.34.

Regional equities were also recovering from a pummelling on Tuesday and on Wednesday as the Chinese sell-off spread.

Mainland Chinese markets have been in free fall since June 12 as traders pull out after a year-long rally that saw shares rise more than 150%.

Regulators announced a series of measures to prevent heavy selling, which provided a boost to confidence and sent regional shares surging on Thursday.

“Market sentiment has definitely reversed significantly and started to stabilise, so it’s safe to say that the state’s measures have won initial success,” Phillip Securities analyst Chen Xingyu told AFP.

“However, there is still a chance for the market to see a second withdrawal (of funds) after big rises like this, but it won’t be as lasting and as deep as earlier plunges,” he said.

The rebound also lifted commodity prices, with iron ore rebounding almost 10% on Thursday a day after falling by a similar amount.

The spot price of the commodity hit $48.99 a tonne after Beijing launched the measures, up from $44.59.

“Iron ore has had its largest single-day fall and gain in the space of 48 hours,” IG Markets noted on Friday.

Oil was also up. US benchmark West Texas Intermediate for August delivery climbed 91 cents to $53.69 and Brent crude for August advanced 97c to $59.58 a barrel in afternoon trade.

Gold fetched $1 163.30 compared with $1 162.39 late on Thursday.

In other markets:

– Wellington fell 12.10 points to 5 725.34.

Fletcher Building was off 1.13% at NZ$7.85 and Air New Zealand closed down 0.59% at NZ$2.535.

–  Manila closed up 0.20% adding 14.90 to 7 392.59.

– Taipei was shut owing to a typhoon.

Article credit: http://www.fin24.com/Markets/International-Markets/Asia-markets-up-on-Greece-hopes-China-rebound-20150710-2