Markets Up On Spain Bank Deal

Markets Up On Spain Bank Deal.

The euro and stock markets have gained in Asia, following Eurozone ministers agreeing to lend Spain up to 100bn euros ($125bn; £80bn) to help its banks.  In Asian trade, the euro rose 1% versus the US dollar and Japanese yen.  Stock indexes in Japan and Hong Kong rose 2%.

According to Stephen Davies of Javelin Wealth Management, the Spanish banking bailout was bigger than many people had expected.  Spain's weakest banks were left with billions of euros of bad loans following the collapse of a property boom and the recession that followed.  Currently Spain is in its second recession in 3 years and the economy is expected to shrink by 1.7% this year.  

Spain is the eurozone's fourth-biggest economy - twice the size combined of those of Greece, Ireland and Portugal, the countries bailed out so far.  

Spain's loan was welcomed by the International Monetary Fund as well as the US and Japan.