Japanese stocks rebounded after investors in the U.S. shrugged off the threat of Greece’s rejection of austerity measures.
The Topix added 1.1 percent to 1,638.55 as of 9:01 a.m. in Tokyo, after falling 1.9 percent on Monday. The Nikkei 225 Stock Average advanced 1.2 percent to 20,342.51. E-mini futures on the Standard & Poor’s 500 Index rose 0.2 percent after the underlying gauge lost just 0.4 percent on Monday. The Europe Stoxx 600 Index fell 1.2 percent.
The initial shock waves that hit markets after Greece’s decision last week to call a weekend referendum on austerity terms had 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.
Euro-area finance ministers meet 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.
Source : Bloomberg