Roundup: Nikkei climbs 1.18 pct to 7-year high on hopes for Greece talks, yen's retreat

The Nikkei stock index climbed 1.18 percent Wednesday to close at more than a seven-year high, as hopes grew that Greece and its creditors would end their standoff and a weaker yen gave exporters and the broader market a boost.

The Nikkei 225 index added 212.08 points to close at 18,199.17, marking its highest closing level since July 2007, while the broader Topix index of all first-section issues gained 1.41 percent, or 20.60 points, to finish at 1,482.67.

The market followed overnight gains on Wall Street, brokers here said, and the yen's comparative weakness against the U.S. dollar was a positive for buying on dips Wednesday, following Tuesday's decline, they added.

But the market mood was somewhat circumspect, they also said, as investors would be keenly eyeing last-ditch attempts between Europe's financial leaders and Greece to find a solution to Athens ' debt woes.

Greek Prime Minister Alexis Tsipras has been reluctant to accept the European Central Bank's option of extending its aid-for- reform program, as the new prime minister, elected on an anti- austerity platform, is adamant he won't leave Brussels without a compromise that his people will accept.

But the situation is causing trouble for Greek banks, which, since talks broke down, have seen huge outflows of cash as ECB policy makers plan to convene later on Wednesday to discuss how far Greece's international creditors may support it, with Germany, according to sources, reluctant to see the ceiling in emergency lending lifted for Greece.

Analysts said they are confident that the standoff will be resolved and some form of compromise agreed between Greece and its creditors, possibly in the form of a conditional six-month extension of the previous bailout program, with certain Greek- negotiated provisos being inked.

"The market thinks they'll eventually reach a last-minute compromise. These assumptions are already being priced into the market," said Hiroichi Nishi, an equities manager at SMBC Nikko Securities Inc.

Naoki Fujiwara, a chief fund manager at Shinkin Asset Management Co., said previously that "People have hopes that there 's a safety net for Greece and it won't default. They'll compromise someway. So there's buying on dips," as continued to be the case Wednesday.

Dip-buying was spurred by the U.S. dollar changing hands at 118. 95 yen, compared to 118.55 yen logged here Tuesday.

As such, exporters, who benefit from a weaker yen as their competitiveness overseas is increased as are their profits when repatriated, found traction, with Nissan accelerating 1.57 percent to 1,194 yen and top automaker Toyota gaining 2 percent to close at 7,959 yen.

Mazda Motor jumped 3.2 percent to 2,507 yen and Honda Motor added 0.4 percent to finish at 3,949 yen, despite reports of a labor dispute causing the firm to lower production levels in the United States.

Bridgestone added 1.7 percent to 4,660 yen, after raising its dividend forecast and consumer electronics giant Sony rose 1.6 percent to close the day at 3,174 yen.

Top lender Mitsubishi UFJ added 3.2 percent to 743 yen and Asahi Glass also closed in positive territory Tuesday, rising 1.3 percent to 720 yen, helped in part by a ratings and price target upgrade by Nomura.

Heavily weighted Fast Retailing, owner and operator of the Uniqlo chain of high street apparel stores, advanced 0.46 percent to close at 43,705 yen, but mobile operator SoftBank lost ground, declining 0.61 percent to 7,018 yen, while Fujitsu shed 0.17 percent to finish at 704 yen.

But it was J-Power who was one of the day's most notable decliners, tumbling 9.8 percent to 4,050 yen, after the coal and hydroelectric power station operator announced a new share issuance program of up to 16.48 million new shares, with a plan to sell 16.52 million treasury shares to finance future energy projects.

Trading volume on Wednesday increased to 2.72 billion shares on the Tokyo Exchange's First Section, up from Tuesday's volume of 2. 31 billion shares, with advancing issues outnumbering declining ones by 1,319 to 426. Endi