Asian stocks rose, with the regional benchmark index heading for its highest close since September, after U.S. equity gauges climbed to records as Greece reached a provisional deal on its bailout program.
The MSCI Asia Pacific Index added 0.1 percent to 145.21 as of 9:01 a.m. in Tokyo. The gauge advanced 1.5 percent last week, while the Standard & Poor’s 500 Index and Dow Jones Industrial Average climbed to all-time highs. Euro-area finance ministers reached an agreement intended to keep aid flowing to Greece for four months in return for a commitment to budget targets, buying time to work out the details of longer-term financing.
“There’s clearly some momentum for equities,” Tim Schroeders, a portfolio manager who helps oversee about $1 billion in equities at Pengana Capital Ltd. in Melbourne, said by phone. “When you have bonds yielding next to nothing, equities are a good alternative. Equities still look cheap relative to bonds. Greece has four months to work out a solution. We’ll have to wait and see.”