Japanese stocks rose as investors assessed the fallout after global equities dropped by the most in two years on concern that Greece will exit the euro.
The Topix index climbed 0.2 percent to 1,627.54, after falling 2.5 percent on Monday. The measure is on track for a quarterly gain of 5.x percent. The Nikkei 225 Stock Average added 0.3 percent to 20,176.99. The MSCI All Country World Index of global developed and emerging-market stocks tumbled 2.2 percent on Monday, its worst loss since June 2013. Investors dumped shares after Greece called for a referendum on a bailout proposal, triggering an end to negotiations with creditors and a shutdown of the nation’s financial system.
Greek Prime Minister Alexis Tsipras unexpectedly called for a vote on July 5 where Greeks will express their opinion on the austerity demanded by creditors. The current bailout package expires Tuesday, with a $ 1.7 billion debt payment due to the International Monetary Fund.
Japanese stocks rose after U.S. equities climbed to a record and a report showed Asiaâ€™s second-biggest economy exited recession last quarter.
Banks, insurers and brokerages led gains among industry groups. Yokohama Rubber Co. jumped 4.8 percent as the tiremaker raised its forecast dividend payments. Asics Corp. tumbled 9.9 percent after the sportswear maker forecast profit that missed analyst estimates. Kuraray Co. dropped 2.1 percent after full-year net income forecasts missed estimates.
The Topix index gained 0.8 percent to 1,460.95 at the trading break in Tokyo, with all but five of its 33 industry groups rising. The measure climbed 2.3 percent last week. The Nikkei 225 Stock Average advanced 0.7 percent to 18,031.84. The yen added 0.1 percent to 118.61 per dollar, strengthening for a third day.
Japanâ€™s economy expanded 2.2 percent in the fourth quarter on an annualized basis, after contracting the previous two periods. The median expectation of 32 economists surveyed by Bloomberg before the provisional data was for growth of 3.7 percent. An update on industrial production is due later in the day.
Source : Bloomberg