Asian stocks rose as Greece presented a new plan to stave off default before an emergency summit in Brussels that could decide the nation’s future in the euro zone.
The MSCI Asia Pacific Index added 0.9 percent to 148.56 as of 5:08 p.m. in Tokyo, the most in two months. E-mini futures on the Standard & Poor’s 500 Index jumped 0.8 percent ahead of Monday’s meeting, which is seen as a last-ditch attempt for Greece and its creditors to devise a bailout deal.
“The U.S. market seems to be reacting somewhat positively to the new Greek proposals,” Shoji Hirakawa, chief equity strategist at Okasan Securities Co. in Tokyo said by phone. “Deadlines may be extended in order to discuss the new proposal, but it doesn’t appear to be ground-breaking.”
Greek Prime Minister Alex Tsipras’s new offer “was a good basis for progress at tomorrow’s Euro summit,” European Commission spokesman Martin Selmayr, said in a Twitter posting. With the clock running down on a June 30 deadline to make payments and work out a new deal after months of fruitless negotiations, Tsipras will have to convince the country’s creditors that he’s ready to compromise on election promises to avoid a default.
“It goes without saying, but the market will be holding on to every headline,” said Kay Van-Petersen, a strategist at Saxo Capital Markets in Singapore. “Given the historic nature of Europe and previous deadlines, there is a decent probability of another ‘deadline’ being put in place.”
Hong Kong’s Hang Seng China Enterprises Index, a gauge of Chinese equities listed in the city, added 1.5 percent, recovering after last week’s 5.7 percent decline.
Markets in China are shut Monday for a holiday. The Shanghai Composite Index tumbled 13 percent last week, its worst weekly selloff since 2008, amid concern valuations have been pushed to unsustainable levels.
The Hang Seng Index advanced 1.2 percent, while Japan’s Topix index climbed 1.1 percent, led by banks which rose the most in a month.
South Korea’s Kospi index gained 0.4 percent, with Shinsegae Co. jumping 16 percent after the nation’s biggest investor disclosed holding a large stake in the department store operator.
Australia’s S&P/ASX 200 Index added 0.2 percent. Melbourne-based fund manager IOOF Holdings Ltd. tumbled 13 percent on a report of alleged misconduct by employees, an issue the company said it had already dealt with and one that wouldn’t result in a loss to clients.
New Zealand’s NZX 50 Index ended 0.2 percent lower after the Westpac McDermott Miller Consumer Confidence index declined to the lowest in two years. Westpac Banking Corp. attributed the poor reading to a recent string of negative news about the diary industry.