Tokyo stocks up at 7-month high on Greece closing in on funds

Tokyo stocks were up to a seven-month high today as Asian shares moved up on signs of Greece being a step closer to securing creditors' approval for the biggest restructuring of sovereign debt ever, and expectations US non-farm payrolls data due later in the day would confirm a labour market recovery.

Results of Greece's bond swap with private creditors showed that 85.8 per cent of private creditors had accepted its bond swap offer and the rate was expected to surge to reach 95.7 per cent with the use of collective action clauses to enforce the deal.

The euro retreated to around $1.3230 from around $1.3260 following the announcement.

According to Yuji Saito, director of the foreign exchange division at Credit Agricole Bank in Tokyo, the headlines from Greece were within expectations and the market reaction was a classic case of buy the rumour, sell the fact.

Officials had earlier maintained that a strong take-up of the offer would make it easier for Athens to secure funding needed to clear a major bond redemption falling due on 20 March.

Japan's Nikkei average gained over 2 per cent to rise to a seven-month high, driving the rally in the MSCI Asia Pacific ex-Japan index, which gained as much as 1.3 per cent. The pan-Asian index was set for a weekly loss of about 1.2 per cent, even as growth concerns dragged prices down in the week before optimism over Greece took over.