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Mainland Chinese shares recover losses

Chinese shares Image copyright AFP
Image caption Mainland Chinese shares continued to rally for a third consecutive day

Mainland Chinese shares continued their way higher as more measures to strengthen the market from its recent rout encouraged investors to return.

The Shanghai Composite closed up 2.4% to 3,970.39, rebounding nearly 20% from the four-month low hit on Thursday.

The latest measures from regulators involved cracking down on "grey-market" margin lending, which is flooding the market with leveraged stock bets.

They will also clamp down on investors creating fake trading accounts.

Regulators said some institutions and individuals were opening fake accounts using other people's identities.

The Shanghai market is still down more than 20% from its peak in mid-June when its three-week sell-off began, prompting the government to intervene with support measures.

In Hong Kong, the Hang Seng index was up 0.2% to 24,948.48 points.

Greece deal hopes

Most Asian shares were higher on hopes for a deal for Greece, despite an emergency summit ending with still no resolution and more deadlines in the debt crisis.

Uncertainty about Greece's future in the bloc led the euro to fall initially, down to $1.089. But it recovered losses to trade at $1.1146 in the afternoon.

The Nikkei ended up 1.6% to 20,089.77 points after losing 3.7% last week.

The euro fell 1% to a low of 135.45 Japanese yen in early trade, but bounced up to 136.65 on rumours that the European Central Bank had agreed to delay a Greek repayment of €3.5bn, which had been due on 20 July.

In Australia, the S&P/ASX 200 index closed down 0.3% to 5,473.20, while South Korea's Kospi index finished 1.5% higher at 2,061.52.

The benchmark index saw its biggest daily rise in three months.

Shares of Hotel Shilla were up 2.3% after it and partners Hyundai Development Engineering & Construction and Hanwha Galleria Timeworld won licences to operate duty-free stores in downtown Seoul.

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