Asian stocks rose amid optimism about Greece’s bailout agreement. A weaker yen buoyed Japanese shares, while gauges of equity volatility across the region fell.
Nomura Holdings Inc., Japan’s biggest brokerage, jumped 4.7 percent in Tokyo as securities firms led the advance on the country’s Topix index. The Nikkei Stock Average Volatility Index tumbled 13 percent. The Shanghai Composite Index retreated 1.2 percent, halting a three-day 13 percent rally.
The MSCI Asia Pacific Index gained 0.7 percent to 143.39 as of 4:01 p.m. in Hong Kong. The Standard & Poor’s 500 Index rose 1.1 percent in New York on Monday, sealing its best three-day advance this year. News of the accord between Greece and its creditors on Monday came after the close of many equity markets in the Asia-Pacific region.
“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.”
Greek Prime Minister Alexis Tsipras surrendered to European demands for immediate action to qualify for as much as 86 billion euros ($95 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.
Japan’s Topix gained 1.6 percent. Australia’s S&P/ASX 200 Index added 1.9 percent and New Zealand’s NZX 50 Index rose 0.8 percent. South Korea’s Kospi index slipped 0.1 percent. Singapore’s Straits Times Index was little changed.
Markets in China declined, with the Shanghai Composite halting a three-day surge spurred by government measures to end a rout that wiped almost $4 trillion from the market’s value. Hong Kong’s Hang Seng Index fell 0.4 percent and the Hang Seng China Enterprises Index lost 1.4 percent.
Chinese economic growth may have slowed to 6.8 percent from 7 percent in the first three months, according to the median estimate of a Bloomberg survey ahead of the report Wednesday. Data on industrial production, fixed-asset investment and retail sales for June are also due Wednesday. Industrial output probably rose 6 percent from a year earlier, slowing from a 6.1 percent gain in May, according to Bloomberg surveys.
E-mini futures on the S&P 500 slipped 0.1 percent. With concern easing on the Greek crisis, U.S. 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.