Roundup: Nikkei climbs 0.73 pct on hopes for Greece extension deal

The Nikkei stock index climbed 0.73 percent Monday to a near 15-year closing high, as investor sentiment was lifted by a provisional agreement made by finance leaders in the eurozone to extend Greece's bailout by four months.

The Nikkei 225 index gained 134.62 points to end at 18,466.92, while the broader Topix index of all first-section issues rose 0. 17 percent, or 2.50 points, to finish at 1,502.83.

The market here got off to a bright start following Wall Street 's lead with the Dow Jones Industrial Average and the S&P 500 both closing at record highs on optimism following a deal being struck between financial leaders in Europe and debt-plagued Greece that could well see its bailout program extended by four months.

The extension, in theory, mean that Athens could avoid a potential default and from exiting the single currency union in the eurozone region.

But the current reform measures still have to be validated by the International Monetary Fund, the European Central Bank and the European Commission, and the extension has been offered only if Greece submits a list of reforms to its creditors by Monday.

"Discussions over Greece have been tipping toward the EU compromising, so the market consensus is that the worst-case scenario will be avoided," said Shoji Hirakawa, chief equity strategist at Okasan Securities Co.

Other local analysts said four months would be enough breathing space for Greece and its creditors to thrash out a longer deal to finance Greece and one that was more acceptable to big players in Europe, like Germany, who have expressed some contempt towards Greece for its new government's brawny attitude towards dumping previously agreed upon austerity measures.

Exporters weren't given much of a break with the U.S. dollar changing hands at 118.95 yen compared to 119.03 yen logged in New York.

But issues with a wide exposure to European markets advanced on hopes for Greece's new reforms and Nippon Sheet Glass added 0.9 percent to close the day at 117 yen.

Toyota Motor Corp. gained 0.6 percent to 8,130 yen and Nissan Motor Co. which also relies on European markets for a significant portion of its sales, accelerated 1.5 percent to close the day at 1,224 yen.

Healthcare and medical device maker Terumo added 1.1 percent to 3,135 yen, following news that it will likely report an record operating profit of 70 billion in the fiscal year ending March, ahead of median analysts' expectations.

Transport issues found traction Monday and comprised some of the day's notable gainers, with Yamato Holdings, a door-to-door delivery service gaining 2.7 percent to 2,826 yen, while rival Nippon Express rose 3.1 percent to close at 669 yen.

But embattled auto parts maker Takata fell 2.6 percent to 1,332 yen, after U.S. Transportation Secretary Anthony Foxx said the company hasn't been cooperating as much as it could with investigators over its faulty airbags which have caused numerous fatalities, and will be fined daily up to a total of 70 million U. S. dollars, until it is more forthcoming with information.

Takata's biggest client, Honda, also closed in negative territory Monday, reversing 0.91 percent to end the day at 3,928 yen. The automaker said after the closing bell that Takanobu Ito, its Chief Executive Officer, would be stepping down.

Trading volume on Monday rose to 2.41 billion shares on the Tokyo Exchange's First Section, up from Monday's volume of 2.40 billion shares, with declining issues outnumbering advancing ones by 923 to 816. Endi