GLOBAL MARKETS-Euro, shares jump in relief rally after Greek vote - Reuters UK
* Euro hits 1-month high around $1.2748
* MSCI Asia ex-Japan up 1.7 pct, Nikkei up 1.8 pct
* U.S. crude up 1 pct to $84.90 a barrel
* Gold down 0.3 pct, Treasury 10-yr yields rise to 1.65 pct
SINGAPORE, June 18 (Reuters) - The euro jumped to a one-month high and Asian shares rose nearly 2 percent on Monday after Greece's election delivered a slim parliamentary majority to pro-bailout parties, a result seen as crucial to European leaders' efforts to hold the euro together.
U.S. stock index futures and riskier commodities such as crude oil and copper also rose, while gold fell after a rally last week, when investors had looked to bullion as a safe haven amid fears the election could trigger financial turmoil.
But analysts cautioned there were still plenty of hurdles ahead and the initial positive market reaction could prove to be short-lived.
"The question is whether there will be a sustained rebound as there's still so many things to sort out - the euro zone's fiscal problems and Spanish banks," said Masayuki Doshida, senior market analyst at Rakuten Securities in Tokyo.
Parties in Greece that broadly support the 130 billion euro EU/IMF bailout will begin forging a government on Monday. The parties, New Democracy and PASOK, would have a parliamentary majority.
Financial markets had feared a victory for SYRIZA, the radical leftists opposed to the austerity package of job, wage and pension cuts that are a condition of the bailout, without which Greece would be bankrupt.
MSCI's broadest index of Asia Pacific shares outside Japan rose 1.7 percent and Tokyo's Nikkei share average jumped 1.8 percent. U.S. S&P 500 futures were trading around 0.4 percent higher.
"It's a temporary rally but we're seeing broad gains because the global situation has changed now that the prospect of a 'Drachmageddon' has disappeared," said Fumiyuki Nakanishi, general manager of investment and research at SMBC Friend Securities in Tokyo.
The euro was up around 0.4 percent at about $1.2685, having climbed as far as $1.2748, its highest level in a month. The U.S. dollar index eased 0.2 percent.
U.S. crude rose 1 percent to around $84.90 a barrel, Brent crude gained nearly $1 to above $98.50 and copper was 0.6 percent higher around $7,556 a tonne.
Safe-haven assets retreated, with gold down 0.3 percent around $1,623 an ounce and benchmark U.S. Treasury 10-year yields rising to around 1.65 percent from about 1.58 percent in last U.S. trade on Friday.
CRISIS NOT OVER
As well as cheering investors, the Greek election result should also come as a relief for world leaders who are due to kick off a G20 meeting in Mexico on Monday.
A statement from the Group of Seven major industrialised nations said it was in "all our interests" for Greece to remain in the euro zone while respecting its international bailout commitments.
But amid the relief, investors' focus was already returning to the many unresolved elements of Europe's deep-seated debt crisis, not to mention concerns over a faltering U.S. recovery and China's transition to a lower growth trajectory.
"We are back to guessing whether or not we will see a growth pact and eurobonds," said Westpac Bank foreign exchange strategists Robert Rennie and Sean Callow in a note. "We are back to guessing when China will come up with a fiscal package to help stabilise a sharply slowing Chinese economy."
Greece's economy remains in deep crisis after five years of recession, Spain has been pushed into seeking 100 billion euros from Europe to rescue its banks and Italy's poor growth prospects and high debt have put it in the bond markets' sights.
After reaching a euro-era high above 7 percent on Thursday, Spain's 10-year bond yield eased 6 basis points from its closing level to 6.90 percent on Friday, while Italian yields fell 15 bps to 6.01 percent.
"Short-covering is well and good but will long-term investors decide that the crisis is over and move back into peripheral countries' debt, or equities? We fear that is highly unlikely," said Sebastian Galy, strategist at Societe Generale in New York.
Galy said more political and structural change was needed to shore up the euro zone's financial system, and a growth plan was urgently required as well.
"The bottom line is that Europe still needs to agree on something that smells and feels a lot more like joint funding than anything that has been suggested so far." (Additional reporting by Ian Chua in Sydney and Sophie Knight in Tokyo; Editing by Neil Fullick)
Kalam is RSS choice for Prez - Daily Pioneer
Even as after reaching Haridwar Bhagwat did express his willingness to have some ‘important talks’ with the saints in Haridwar, the agenda of these talks remained undisclosed and the RSS officer bearers were shrugging off the question saying only Bhagwat can reply to this question.
However, the present issue of Presidential poll did come up during the casual talks that the RSS chief held with local reporters. “The election of President in India has got a special process and only some selected people can cast their vote. However, according to me, former President APJ Abdul Kalam should contest election again. He is the best Presidential candidate,” Bhagwat said.
“Kalamji is a person with no political linkages and has got a mass support in the form of people who want him back as their President,” Bhagwat said, while answering a question about whether he supports the candidature of Pranab Mukherjee, as the Presidential candidate. “Former President APJ Adbul Kalam is my nominee for the Presidential poll,” Bhagwat said.
About the controversial issue of hydro-electric power projects on river Ganga, Bhagwat said the Central and the State Governments should formulate policies keeping in mind that Ganga is a holy river and needs to be preserved. “Crores of Indian consider Ganga as a goddess and also worship the river. The issue should not be politicised for personal benefits. The RSS wants the Governments to make policies keeping the importance of Ganga in mind,” Bhagwat added.
Meanwhile, Swami Ramanandacharya Rambha-dracharya, whom Bhagwat had come to meet in the former’s ashram said, “I also feel that Kalamji is the best candidate for the post of President. People have seen his tenure as a President once and want him back. He is definitely a far better candidate than Pranab Mukherjee, who is known as a Congressman.”
About the proposed Ganga Raksha programme to be organised in Delhi by Swami Swaroopanand Saraswati soon, Rambhadracharya said that the saint fraternity will support the programme only if Swami Swaroopanand keeps political parties and politicians away from the function.
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