TOKYO: Tokyo stocks rose 0.81 per cent on Monday morning, as investors reacted to news that eurozone ministers agreed to extend Greece’s bailout by four months, giving Athens some critical breathing room.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange, which hit a 15-year high, last week, added 148.89 points to 18,481.19 by the break, while the Topix index of all first-section shares gained 0.46 per cent, or 6.90 points, to 1,507.23.
“Greece has been given a lifeline, even if just short-term, which is a positive boost to the market,” said Ayako Sera, market strategist at Sumitomo Mitsui Trust Bank, told Bloomberg News.
“Investors are getting into risk-on mode. However, Greece has only earned itself four months so we’ll see the same problems again around June.” On Friday, US stocks bolted to fresh records after the eurozone conditionally gave Greece the bailout extension, easing worries over its future in the eurozone.
The bailout will be extended as long as Greece sets out key reform commitments by Monday, Eurogroup chief Jeroen Dijsselbloem said following a meeting with finance ministers in Brussels.