Asian markets rise as Italy vows debt crisis plan

HONG KONG: Asian markets rose Monday as Italy's new leader vowed to pull the debt-laden country back from the brink of a fiscal disaster that has threatened to tear apart the eurozone.

Former European Union Commissioner Mario Monti was nominated Sunday to replace Silvio Berlusconi as prime minister and pledged to get to work on tackling a crippling debt crisis in the eurozone's third-largest economy.

Tokyo was 1.21 percent higher in morning trade, while Sydney gained 0.76 percent, with Seoul up 2.11 percent. Hong Kong gained 2.32 percent, while Chinese shares were about 1.36 percent higher.

The euro climbed against the dollar on the back of the political shuffle with Monti's formal appointment expected within days.

The single currency also got a boost as debt-laden Greece ushers in a new government headed by the European Central Bank's ex-deputy chief Lucas Papademos under a power-sharing deal between the country's main rival parties.

"Investors are thinking these political developments will help Europe find a way out of its debt crisis," said Peter Copeland, senior institutional trader with Sydney-based brokerage BBY.

"(But) a lot of people will see these developments as just kicking the can down the road."

Italian lawmakers on Saturday approved a package of economic reforms that Berlusconi set as the precondition for his resignation amid global market turmoil. (AFP)