Tokyo stocks close up 1.72%
Tokyo stocks closed 1.72 percent higher Tuesday thanks to a weak yen, and after US and European markets rose on hopes Greece's new anti-austerity government will thrash out a fresh bailout deal with its international creditors.
The Nikkei 225 index at the Tokyo Stock Exchange rose 299.78 points to 17,768.30, while the Topix index of all first-section shares added 1.73 percent, or 24.30 points, to end at 1,426.38.
Victory for the far-left Syriza party in Sunday's general elections initially sparked fears Athens will refuse to stick to its bailout obligations and eventually leave the eurozone. The party had campaigned on renegotiating terms of the lifeline, which include major spending cuts and painful tax hikes.
However, while talks between new Prime Minister Alexis Tsipras' party and its creditors including the IMF and EU are expected to be tough, analysts say Greece will likely remain in the 19-nation currency bloc.
"Concerns have eased that the anti-austerity policies of the new government will force Greece to exit the eurozone," Gavin Parry, managing director of Parry International Trading, told Bloomberg News.
"With earnings season in Japan expected to be net positive, and with the yen depreciating back thanks to fears easing over Greece, there's an added boost for Japanese stocks."
Nintendo, Japan Airlines and Honda are among the firms reporting their quarterly financial results this week as earnings season kicks into gear.
In Tokyo forex trading, the euro ticked up to $1.1241, from $1.1234 in New York. It briefly fell to $1.1098 in Asia on Monday -- its lowest level since September 2003.
The dollar was at 118.23 yen Tuesday, down from 118.49 yen in US trade, but still above the 117.90 yen seen in Tokyo earlier Monday.
Toyota rose 1.29 percent to 7,825.0 yen, Canon tacked on 1.30 percent to 3,935.0 yen and Uniqlo operator Fast Retailing was up 1.94 percent at 43,160.0 yen.
Sony lost early gains to close 0.20 percent lower at 2,740.0 yen.
Marubeni clawed back some losses to close down 0.34 percent at 668.9 yen after the trading giant cut its annual profit forecast and said it was taking $1.0 billion writedown, partly owing to the plunge in crude prices.
On Wall Street, the Dow edged up 0.03 percent, the S&P 500 added 0.26 percent and the Nasdaq gained 0.29 percent.
European stocks also rose as investors largely shrugged off the expected result of the Greek election.
mis-pb/dan
