Asian stocks rise amid relief over Greece's bailout deal

Asian stocks rose, following gains in US equities, amid optimism over Greece's bailout agreement.
Asian stocks rose, following gains in US equities, amid optimism over Greece's bailout agreement.PHOTO: BLOOMBERG

SYDNEY (BLOOMBERG) - Asian stocks rose, following gains in US equities, amid optimism over Greece's bailout agreement.

The MSCI Asia Pacific Index gained 0.4 per cent to 142.98 as of 9:01 a.m. in Tokyo. The Standard & Poor's 500 Index rose 1.1 per cent in New York on Monday, sealing its best three-day advance this year. News of the accord between Greece and its creditors came after the close of many equity markets in the Asia-Pacific region on Monday.

Greek Prime Minister Alexis Tsipras surrendered to European demands for immediate action to qualify for as much as 86 billion euros (S$129 billion) of aid he needs to keep his country in the euro area. The Greek parliament has until Wednesday to pass into law key creditor demands including streamlining value-added taxes, broadening the tax base to increase revenue and curbing pension costs.

"Relief has set in that contagion from a Greek financial collapse has been avoided," Jasper Lawler, London-based market analyst at CMC Markets Plc, said in an e-mail. "The avoidance of Greece's exit from the eurozone, at least for the time being, should be enough to encourage investment flows back."

Japan's Topix index gained 1.5 per cent as the yen weakened for a fourth day against the dollar to trade at 123.61.

Australia's S&P/ASX 200 Index added 0.5 per cent and New Zealand's NZX 50 Index rose 0.4 per cent. South Korea's Kospi index climbed 0.4 per cent.

E-mini futures on the S&P 500 were little changed. With concern easing on the Greek crisis, US equity investors are retraining their focus toward economic data for clues as to the timeline for Federal Reserve monetary-policy tightening. Reports due this week include retail sales, industrial production, housing starts and consumer sentiment. JPMorgan Chase & Co., Wells Fargo & Co. and Intel Corp. are among S&P 500 members slated to report results this week.