Asian stocks climbed to a five month high amid speculation that Greece and its creditors may be moving toward a compromise. Haven assets held declines and Indonesia’s rupiah slid after a surprise rate cut.
The MSCI Asia Pacific Index advanced 0.5 percent by 11 a.m. in Tokyo, as Japanese stocks climbed following a 0.7 percent slump in the yen. Gold slipped from its lowest close in more than six weeks as a person familiar with the matter said Greece may seek a six-month extension of a loan agreement as soon as today. Australia’s 10-year bond yield rose eight basis points, pacing Tuesday’s decline in U.S. Treasuries. Standard & Poor’s 500 Index futures were little changed.
“Most market participants assume that, unlike last time, even in the worst case scenario the problems in Greece won’t lead to a breakdown in the European financial system,” Hiroichi Nishi, an equities manager at SMBC Nikko Securities Inc. in Tokyo, said by phone. “These assumptions are already being priced into the market.”
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