Japanese stocks closed higher after swinging between gains and losses, as negative yields on domestic bonds and China’s fresh stimulus plan increased the appeal of shares to offset the impact of a stronger yen.
The Topix index gained 0.2 percent to 1,300.83 at the close of trading in Tokyo after dropping as much as 1 percent. The Nikkei 225 Stock Average added 0.4 percent to 16,085.51, erasing losses in the final 15 minutes as China shares rallied. Crude climbed 3 percent on Monday and the People’s Bank of China announced a reduction in reserve-requirement ratios for local lenders. Japan sold 10-year bonds at a sub-zero yield for the first time on Tuesday.
The yen gained as much as 0.5 percent and traded at 112.63 per dollar after rising 1.2 percent the previous day amid speculation Japan won’t intervene to weaken the currency.
U.S. stocks advanced, after falling for the third time in four sessions, amid speculation Greece will reach a deal with its creditors while banks and insurers rose with Treasury yields.
Citigroup Inc. rallied to its highest level this year, while JPMorgan Chase & Co. and Wells Fargo & Co. gained more than 1.2 percent. MetLife Inc. jumped 2 percent. Trucking companies led a surge in transportation shares. Intel Corp. fell for a third day to weigh on semiconductors, and utility companies tumbled 1.5 percent.
Standard & Poor’s 500 Index added 0.3 percent to 2,115.01 at 12:03 p.m. in New York, after earlier rising 0.6 percent. The Dow Jones Industrial Average rose 85.02 points, or 0.5 percent to 18,096.96. The Nasdaq Composite Index climbed 0.5 percent, while the Russell 2000 Index advanced 0.8 percent to a five-week high.
Investors are speculating that Greece will reach a deal with European leaders and the International Monetary Fund before payment deadlines due this month. Prime Minister Alexis Tsipras will hear details of a final proposal from creditors when he meets European Commission President Jean-Claude Juncker in Brussels on Wednesday.
Source : Bloomberg