Hong Kong---Asian markets rose for a third straight day Wednesday, with Tokyo hitting an 18-year high, on confidence Greece will finally hammer out a bailout reform deal with creditors and avert a default.
With expectations high that a last-minute agreement will be reached, the euro resumed its downward spiral against the dollar as traders turned their attention to a possible US rate rise and European monetary easing.
Tokyo climbed 0.28 percent, or 58.61 points, to 20,868.03, its best finish since December 1996.
In late trade Shanghai had piled on more than two percent for a second straight day after plunging more than 13 percent last week. Analysts said the market is benefiting from the release of cash that had been tied up for a recent batch of initial public offerings.
Hong Kong advanced 0.22 percent in the afternoon.
Sydney was flat, adding 2.5 points to close at 5,686.8, and Seoul was 0.21 percent, or 4.33 points, higher at 2,085.53.
Global equity markets are on a roll this week after Greece at the weekend submitted bailout proposals that were welcomed by creditors.
Eurozone finance ministers will meet Wednesday to work on details of the new plan, before a full European Union summit is held the day after.
However, Greece's leaders -- elected on an anti-austerity platform -- cautioned they had to get any agreement through parliament, with some members of the ruling party claiming red lines on some issues such as tax had been crossed.
Greece must unlock billions of euros in aid before a June 30 deadline to repay an International Monetary Fund debt. It if fails it will default, with some warnings it could be ejected from the EU.
- 'Foregone conclusion' -
Markets appear to have taken the view that an agreement in Greece "is a foregone conclusion," Ric Spooner, chief market analyst in Sydney at CMC Markets, told Bloomberg News.
"Markets have now focused back on what they were focusing on prior to real concerns developing about Greece, and that is the adjustment for the potential for higher interest rates."
On Wall Street Tuesday the Dow added 0.13 percent and the S&P 500 nudged up 0.06 percent. The Nasdaq put on 0.12 percent to end at another record for a second day in a row.
And in Europe, Athens rose more than six percent, adding to a nine percent gain Monday.
There were also advances in Paris, Frankfurt, London, Lisbon, Rome and Madrid.
The euro was under pressure on as investors' confidence on a Greek debt deal allowed the focus to shift to the prospects of higher US interest rates ahead.
AFP
