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Tokyo: Stocks rise as optimism grows for deal on Greece debt

Tuesday, June 23, 2015 - 08:20
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[TOKYO] Japanese stocks rose, following a rally in global stocks, amid optimism a deal between Greece and its creditors will be reached.

The Topix added 0.6 per cent to 1,658.67 as of 9:01 am in Tokyo, with three shares rising for each that fell. The Nikkei 225 Stock Average gained 0.5 per cent to 20,539.30. The MSCI All- Country World Index jumped 1.2 per cent Monday amid gains from the U.S. to Europe.

"Advances in the Greek situation are behind the flow of funds into U.S. and European stocks," Toshihiko Matsuno, chief strategist at SMBC Friend Securities Co. in Tokyo, said by phone. "It's difficult to judge without knowing the proposal's contents in detail, but the market appears to be seeing it as a step forward."

European Commission President Jean-Claude Juncker said after an emergency summit in Brussels that he was convinced a final agreement will be reached with Greece this week.

European leaders gave Greek Prime Minister Alexis Tsipras's government 48 hours to make the final push needed to satisfy creditors and end a five-month standoff over aid that risks splitting the euro.

Greece's 18 fellow euro-zone countries agreed that Tsipras's government was finally getting serious about striking a deal after it submitted a set of reform measures that began to converge with the terms demanded by creditors. They agreed to step up the pace of negotiations to secure a breakthrough on Wednesday that leaders can sign off at the end of the week.

The package of proposals represents "a certain step forward, but it was also said very clearly that we're not yet where we need to be," German Chancellor Angela Merkel told reporters in Brussels Monday night. "Hours of the most intensive deliberations lie ahead of us."

"They've got a short-term resolution," Mark Lister, Wellington-based head of private wealth research at Craigs Investment Partners Ltd, which manages about US$7.2 billion, said by phone.

E-mini futures on the Standard & Poor's 500 Index rose 0.2 per cent. The underlying gauge gained 0.6 per cent in New York on Monday as data showed previously owned homes in May sold at the fastest pace since November 2009, adding to evidence the US economy will be strong enough to withstand the first interest rate increase since 2006.

BLOOMBERG