Asian stocks rose, with the regional benchmark index rebounding from the biggest drop since February 2014, as investors weighed developments in Greece’s debt crisis before an emergency meeting of European leaders.

The MSCI Asia Pacific Index gained 0.4 percent to 144.06 as of 9:02 a.m. in Tokyo after falling 2 percent on Monday. The initial shock waves that hit markets after Greece’s decision to call a referendum on austerity terms dissipated into a ripple by the end of Monday trading, as investors speculated the crisis wouldn’t spread beyond the nation’s borders. Greece is now under pressure to come up with a plan to stay in the euro after Greeks voted to reject further austerity in Sunday’s vote.

Euro-area leaders and finance ministers gather Tuesday for an emergency meeting after German Chancellor Angela Merkel said “time is running out” for Greece to come up with a plan to stay in the currency union. The European Central Bank maintained the level of Emergency Liquidity Assistance available to Greece, while tightening terms related to collateral. Greek banks remain shut through Wednesday.

Greek Prime Minister Alexis Tsipras replaced Finance Minister Yanis Varoufakis, who resigned Monday after more than five months of fruitless back-and-forth in negotiating with creditors. Tsipras is betting that a less confrontational face will help him bring German Chancellor Angela Merkel and other European leaders back to the table.

Source : Bloomberg