Asian Stocks Gain As Polls Indicate Win For Pro-Austerity Parties In Greece

Asian stock markets mostly advanced Monday as concerns of a potential Grexit eased after recent opinion polls showed that pro-austerity parties might be able to form a coalition government.

Hong Kong's Hang Seng gained 0.27 percent, or 50.86 points, to 18764.27 and India’s BSE Sensex rose 0.59 percent, or 95.69 points, to 16,313.51, while Japan's Nikkei Stock Average and Chinese Shanghai composite index remained flat.

The likelihood of Greece leaving the euro zone has lessened after latest opinion polls on Sunday suggested that Greece's conservative New Democracy party that backs the country's international bailout will gain a majority when the country holds fresh elections on June 17. Polls showed that New Democracy has a 5.7 percent lead over Syriza, the rival faction which does not support bailout.

“There will be some relief reverberating through markets at the news this weekend that Greek opinion polls show growing support for pro-bailout parties. While the Greek election is still some weeks off suggesting that uncertainty will not ease quickly this news will allay fears of a quick ‘Grexit',” said a note from Credit Agricole.

Some exporter companies’ shares rallied in Japan. Sharp Corp climbed 6.39 percent and Nintendo surged 3.39 percent, while Canon Inc gained 1.70 percent.

Renesas Electronics Corp slumped 10.62 percent on news that the company will sell loss-making operations and cut at least 12,000 jobs as Japan's chip sector grapples with its biggest shake-out in a decade, Reuters reported.

Chinese property developers and financial companies’ shares advanced in Hong Kong. China Resources Land gained 2.34 percent and China Overseas Land & Investments Ltd advanced 2.41 percent, while Bank of China rose 1.4 percent.