Japan's Nikkei stock market rose to its highest in more than 18
years Wednesday, buoyed by optimism that Greece is moving closer to
a bailout deal with creditors, while China shares appeared to gain
some footing following a volatile streak.
The Nikkei 225 was last up 0.5% at 20922.38, the highest since
December 1996.
Elsewhere in the region, the Shanghai Composite was up 0.5%, the
Hang Seng Index gained 0.3% and Australia's S&P ASX 200 was up
0.1%. U.S. stocks also rose overnight, with the Nasdaq Composite
reaching an all-time high for the second straight day.
Differences remain between Greece and its lenders, but progress
has been made in talks on an agreement that would stop the country
defaulting and possibly leaving the eurozone.
"The global environment is OK," said Hugh Young, who helps
manage Asian equities at Aberdeen Asset Management Asia Ltd.
Japan shares have had a steady run since October. Support has
come from buying by the government's huge pension fund, a weaker
Japanese yen and buying by foreigners. The Nikkei last broke
through the 20000 level in late April.
Local investors are also more interested in equities as Japanese
bonds are returning low yields, said Mr. Young.
In China, the Shanghai benchmark built on Tuesday's 2% gain. The
market was recovering after a volatile session where analysts said
margin calls—when brokerages ask investors to add more money to
cover loans to buy stocks—caused the benchmark to plunge nearly 5%
intraday.
Write to Chao Deng at Chao.Deng@wsj.com
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