TOKYO: Tokyo stocks rose 1.50 percent on a weaker yen Tuesday morning after Greece and its creditors agreed a debt deal that removes a barrier to the Federal Reserve hiking US interest rates this year.
The Nikkei 225 index at the Tokyo Stock Exchange added 301.97 points to 20,391.74 by the break, while the Topix index of all first-section shares climbed 1.46 percent, or 23.59 points, to 1,637.10.
After 17 hours of talks Greece accepted an austerity package to unlock billions of euros of much-needed cash and, crucially, keep it from plunging out of the eurozone.
The deal also means the Fed’s policy committee has one impediment to raising interest rates removed. The US central bank had been keeping a close watch on events in Europe, with concerns a Greek euro exit would hit the global economy.
“One important side-effect of diminished Greece concerns Monday has been the recovery in Fed rate hike expectations,” BNP Paribas said in a client note.
“A firm run of US data this week could see expectations pulled a bit further forward to the benefit of the USD.”
The dollar rose to 123.49 yen Tuesday from 123.45 yen in New York, while the euro eased to $1.0986 from $1.1004.
