Asian markets rise on lower Greek risk

Asian stocks rose, with the key regional index headed for its highest close in three weeks, amid signs Greece may avoid defaulting on its debt, lessening a risk to bank earnings, and after commodities gained.

Standard Chartered Plc, the UK's third-largest bank by market value, gained 2 per cent in Hong Kong on speculation Greek lawmakers will pass budget cuts needed to secure international financial aid.

BHP Billiton Ltd, the world's top mining company, jumped 1.8 per cent after oil and metal prices climbed.

Fanuc Corp, Japan's biggest maker of industrial robots, advanced 3.6 per cent in Tokyo after the nation's factory output expanded at the fastest pace in more than 50 years.

"There's less anxiety about the issues surrounding Greece's debt," said Hiroichi Nishi, an equities manager at SMBC Nikko Securities Inc in Tokyo. "Investors are starting to move into riskier assets."

The MSCI Asia Pacific Index climbed 1.3 per cent to 133.04 as of 7.27pm in Tokyo, headed for its highest close since June 8th. Almost four stocks rose for each that dropped on the measure. The gauge tumbled 6.7 per cent from this year's high on May 2nd through yesterday, amid concern a slowing US economy, Europe's sovereign debt crisis and China's steps to curb inflation will crimp earnings.

Japan's Nikkei 225 Stock Average and South Korea's Kospi Index increased 1.5 per cent. Australia's SandP/ASX 200 Index advanced 1.2 per cent. Hong Kong's Hang Seng Index was little changed after swinging between gains and losses and China's Shanghai Composite Index lost 1.1 per cent.

Futures on the Standard and Poor's 500 Index climbed 0.2 per cent today. The gauge advanced 1.3 per cent yesterday in New York, rising to its highest level in three weeks, after Nike Inc's earnings beat estimates and amid optimism Europe will take action to
prevent a Greek default.

Stocks extended gains ahead of a meeting in Berlin today between the German finance ministry and the nation's biggest banks in search of an agreement on how creditors will contribute to an aid package for Greece, two people with knowledge of the matter told Bloomberg.

Greek lawmakers will vote today and tomorrow on budget cuts and tax increases that European officials have set as a condition for delivering bailout money. Failure to resolve the crisis in Greece, which needs loans from Europe and the International Monetary fund to cover €6.6 billion of maturing bonds in August, may further increase funding costs for banks, even when they don't own Greek bonds.

Mitsubishi UFJ Financial Group Inc, Japan's largest bank, advanced 1.1 per cent to 382 yen.

Commonwealth Bank of Australia, the nation's biggest lender by market value, added 1.1 per cent to A$51.37. Moody's Investors Services last month cut ratings for Australian banks because of their reliance on debt markets for funding.

Exporters to Europe rebounded. Canon Inc, the world's biggest camera maker by sales, advanced 2.1 per cent to 3,820 yen in Tokyo. Nintendo, which sells about a third of its Wii game consoles and other products in Europe, rose 1.5 per cent to 15,160 yen. Esprit Holdings Ltd, a Hong Kong-based clothier that counts Europe as its main market, increased 2.6 per cent to HK$24.05 in Hong Kong.

Japanese manufacturers and utilities advanced after government data showed factory output increased 5.7 per cent in May from April, the biggest gain since 1953, as companies reopened factory lines damaged by a record earthquake and tsunami on March 11th. The median estimate of economists surveyed by Bloomberg was for a 5.5 per cent gain.

Bloomberg