Asian Equities Higher to Five Month High

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.”

Bloomberg

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