European Shares Gain on Fresh Greek Bailout, Asia Mixed

Shares are higher in Europe after Greece reached a deal with its creditors that will stave off a fresh eurozone crisis. Benchmarks were mixed in Asia following the release of weaker-than-expected China manufacturing data.

Britain’s FTSE 100 gained 0.5 percent to 7,238.32 while the CAC 40 in France added 0.3 percent to 5,283.19. Germany’s DAX edged 0.1 percent higher to 12,448.33. U.S. shares looked set for a lukewarm start, with Dow and S&P futures both down 0.1 percent.

Greece and its creditors agreed that the country should make another round of pension cuts in 2019 and commit to a budget target when its current bailout program ends next year. The deal will restart bailout loan payments and keep the country from facing default and reigniting a eurozone crisis this summer, officials said Tuesday.

In other reassuring news, the U.S. House of Representatives is due to vote Wednesday on a spending bill that would fund most government operations through September. The bill does not include the border wall President Donald Trump has proposed, and rejects his proposed cuts to popular domestic programs.

“After all the political events were settled, at least temporarily, the market focus now turns to corporate earnings season. So far, over 80 percent of the S&P 500 companies have announced positive surprises in their first-quarter earnings,” said Margaret Yang of CMC Markets Singapore.

The Caixin China purchasing managers survey found Chinese factories slowed production and slashed jobs in April as new orders weakened. The index fell to 50.3 from 51.2 in March, on a scale of 0-100 with readings above 50 indicating expansion. An official survey released earlier showed similar trends. “The latest PMI readings support our view that growth in China peaked at the turn of the year and is now decelerating,” Julian Evans-Pritchard of Capital Economics said in a commentary.

Japan’s Nikkei 225 index advanced 0.7 percent to 19,445.70, helped by a weaker yen, which boosts profits for manufacturers. South Korea’s Kospi gained 0.7 percent to 2,219.67. The Hang Seng in Hong Kong added 0.3 percent to 24,696.13, while the Shanghai Composite index gave up 0.4 percent to 3,143.71. Australia’s S&P ASX 200 fell 0.1 percent to 5,950.40, while shares were higher in Taiwan and Southeast Asia.

Benchmark U.S. crude gained 23 cents to $49.07 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 49 cents, or 1 percent, to $48.84 a barrel on Monday. Brent crude, used to price international oils, rose 41 to $51.93 a barrel.

The dollar rose to 112.23 yen from 111.84 yen. The euro advanced to $1.0919 from $1.0898.