Japan Shares Rise Third Day After Yen Falls on Greece Agreement

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Japanese stocks rose a third day after the yen weakened to an almost two-week low amid optimism over Greece’s bailout. Brokerages led gains on the Topix index.

Nomura Holdings Inc., Japan’s biggest brokerage, jumped 4.7 percent. Excel Co. surged 21 percent after activist investor Yoshiaki Murakami said he holds a 5.2 percent stake in the electronic-products maker. Disco Corp. added 4.7 percent after a report the machinery manufacturer will post record operating profit. Obayashi Corp. slumped 0.5 percent after UBS Group AG cut its rating on the construction company.

The Topix climbed 1.6 percent to 1,638.71 at the close of trading in Tokyo after jumping 1.9 percent on Monday for its biggest advance this year. The Nikkei 225 Stock Average added 1.5 percent to 20,385.33. The yen was little changed at 123.38 per dollar after falling 0.5 percent yesterday.

Greek Prime Minister Alexis Tsipras surrendered to European demands for immediate action to qualify for up to 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.

“I think they’re somehow going to be able to pass this law, and then for the time being, this problem will be out the way,” said Soichiro Monji, chief strategist at Tokyo-based Daiwa SB Investments Ltd., which oversees 5.8 trillion yen ($47 billion). “That’s some big progress in the Greek negotiations.”

Stop Revolt

With two factions in his government already saying they won’t support the deal, Tsipras met with his closest aides as he tries to stop the revolt from spreading.

“We might see fights over this within Greece and July 15, the date when it has to be put into law, now becomes key,” said Toshihiko Matsuno, chief strategist at SMBC Friend Securities Co. in Tokyo.

Futures on the Standard & Poor’s 500 Index were little changed after the measure rose 1.1 percent on Monday to cap its steepest three-day rally this year.

The Bank of Japan began a two-day policy meeting Tuesday, with two of 35 analysts surveyed by Bloomberg expecting an expansion of stimulus.

Nomura gained 4.7 percent, the second-biggest gain on the Nikkei 225. Individual investor account openings at the brokerage were more than twice the pace of the previous year, people with knowledge of the matter said.

Excel gained 21 percent, the most since October and the biggest jump on the Topix. Murakami, Japan’s most famous activist shareholder before he was convicted of insider trading in 2007, held a 5.2 percent stake in the company as of July 6.

Disco gained 4.7 percent, the most since May. First quarter operating profit probably surged 60 percent on the year to 9 billion yen, helped by capital investment by makers of smartphone components, the Nikkei newspaper reported.

Obayashi slumped 0.5 percent. The stock was cut to neutral from buy by UBS.

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