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Nikkei climbs to 1-1/2-week high after Greece agrees to debt deal
July 14, 2015 / 2:35 AM / in 2 years

Nikkei climbs to 1-1/2-week high after Greece agrees to debt deal

* Nikkei above 25-day moving average for 1st time in a week
    * Investor focus shifts back to the timing of Fed hikes -
    * Chinese market's volatility still in focus - analysts

    By Ayai Tomisawa
    TOKYO, July 14 (Reuters) - Japanese stocks surged on Tuesday
morning to a 1-1/2-week high after Greece agreed to a debt deal
with its creditors, lifting all sectors while the weaker yen
supported overall sentiment.
    The Nikkei share average rose 1.6 percent to
20,419.95 in mid-morning trade, after rising as high as
20,435.53 earlier, the highest since July 3.
    The index rose above its 25-day moving average for the first
time in a week.
    Greece won conditional agreement to receive a possible $95
billion over three years, along with an assurance of talks to
bridge a funding gap until a bailout is ready. 
    Analysts said that Greek woes had receded, which helped
investors' shift attention back to when the U.S. Federal Reserve
would raise interest rates. Meanwhile, Fed Chair Janet Yellen is
set to testify on the economy before Congress on Wednesday.
    Market observers also said that investors would look to
signs of recovery in the Japanese economy.
    Masashi Oda, senior investment officer at Sumitomo Mitsui
Trust Bank, said once risk-averse investors will likely revisit
Japanese shares.
    "Recovering economic data and the first half of Japanese
corporate earnings will continue to be in focus," Oda said.
    Exporters were higher, with Toyota Motor Corp 
rising 1.3 percent, Honda Motor Co adding 2.0 percent
and Panasonic Corp gaining 1.8 percent.
    Financial stocks were also in demand, with Nomura Holdings
 jumping 4.9 percent and Daiwa Securities Group 
soaring 3.3 percent. Mitsubishi UFJ Financial Group 
gained 1.8 percent and Mizuho Financial Group rose 1.5
    Daio Paper Corp jumped 8.9 percent to a two-week
high after the Nikkei business daily said the company's pre-tax
profit likely jumped 26 percent for the April-June quarter
helped by strong baby diaper sales.
    On the other hand, Sony Corp dropped 2.2 percent to
3,448 yen after it set a price of 3,420.5 yen per share for its
first new-share offering in 26 years, lower than the current
stock price. 
    The broader Topix gained 1.7 percent to 1,641.15,
with all of its 33 sub-sectors rising. The JPX-Nikkei Index 400
 advanced 1.8 percent to 14,836.23.    

 (Editing by Jacqueline Wong)

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