Stocks revive amid Greece optimism

Asian stocks rebounded today on signs that a debt relief deal for Greece will go through and as an upbeat report on US payrolls added to optimism about the world’s biggest economy.

Japan’s Nikkei 225 index rose 1.3% to 9,697.99. Hong Kong’s Hang Seng gained 0.7% to 20,765.51 and South Korea’s Kospi edged up 0.4% to 1,989.46.

Growing investor participation in a massive Greek debt relief deal bolstered the mood in stock markets.

By last night, investors owning around half of Greece’s privately held debt had committed to a bond swap that would see them accept losses to avoid facing even bigger ones in case Athens defaults.

Greece needs at least 67% of investors to sign up by tonight, so it can get a related €130bn bailout from European countries and the International Monetary Fund.

A private monthly report on US payrolls that estimated companies added 216,000 workers last month, beating expectations, also helped boost investor sentiment.

“Risk assets are set to benefit from the improved sentiment, though trading may still be cautious ahead of a slew of events later this week,” including interest rate decisions by the European and British central banks and US jobs data, strategists at Credit Agricole CIB wrote in a research note.

In mainland China, the benchmark Shanghai Composite Index rose 0.9% to 2,416.54 and Australia’s ASX/S&P 200 was up 0.5% to 4,165.10. Benchmarks in Taiwan, Singapore and New Zealand also rose.

On Wall Street yesterday, the Dow Jones industrial average closed up 0.6% at 12,837.33. The S&P 500 index gained 0.7% to close at 1,352.63. The Nasdaq composite index 0.9% to close at 2,935.69.

In currencies, the euro rose to $1.3156 from $1.3150 late yesterday in New York.

The dollar rose to 81.21 Japanese yen from 81.19 yen.