Brussels, Belgium (BBN)-Asian stocks rose, poised for a two-month high, as a weaker yen buoyed Japanese shares amid optimism the actions of Greece’s new government won’t force the nation to leave the euro currency bloc.
The MSCI Asia Pacific Index (MXAP) advanced 0.4 percent to 141.24 as of 9:03 a.m. in Tokyo, reports the Bloomberg.
European finance ministers have signaled willingness to work with Greek PM elect Alexis Tsipras, as long as the leader of the victorious Syriza party drops his demand for a debt writedown. At a meeting in Brussels on Monday, ministers agreed quickly to work with the new government to help keep Greece in the euro, Dutch Finance Minister Jeroen Dijsselbloem said.
“The new government, its various investors/creditors and the European Central Bank will work together to avoid disaster,” Scott Schuberg, chief executive officer at Rivkin Securities in Sydney, wrote in an e-mail.
“Greece has just elected a party that will commit to tax cuts and more public spending. It’s going to need outside investors.
To prove itself as economically hostile toward foreign investors would send its economy back to the stone age.”
Japan’s Topix index climbed 0.8 percent as the yen extended yesterday’s 0.6 percent slide against the greenback.
South Korea’s Kospi index added 0.5 percent. New Zealand’s NZX 50 index rose 0.4 percent.
Australia’s S&P/ASX 200 index increased 0.3 percent as trading resumed following yesterday’s holiday.
Markets in China and Hong Kong have yet to open.
China’s stocks rose for a fifth day yesterday, sending the benchmark Shanghai Composite Index to a five-year high, as technology companies advanced on speculation they will benefit from increased government spending on national defense. Data on the nation’s industrial profits is due today.
Futures on the standard & poor’s 500 index were little changed.
The U.S. equity benchmark added 0.3 percent yesterday as gains in energy companies outweighed a drop in technology shares.