TOKYO–-Japan stocks rose, with the Nikkei 225 Stock Average rising the most since April, as official projections showed parties supporting Greece's bailout won enough seats to control parliament, easing concern the euro currency bloc would lose one of its 17 members.
Power-tool maker Makita Corp., which gets the highest proportion of sales in Europe among Topix companies, advanced 5.1%. Nomura Holdings Inc., the country's largest brokerage, rose 3% as securities firms posted the biggest advance on the Topix Index. Honda Motor Co. rose 2.6% on a report the automaker will shift output to smaller models to meet growing demand while scrapping some high-end sedans.
The Nikkei 225 climbed 2.2 % to 8,759.11 at 10:01 a.m. in Tokyo, its biggest rise since April 18, with all but seven stocks on the gauge advancing. The broader Topix gained 2.1% to 741.64, with volume 3.4% higher than the 30- day average.
"Greece's election is a good result and will provide some short-term relief," said Nader Naeimi, Sydney-based head of dynamic asset allocation at AMP Capital Investors Ltd., which manages almost US$100 billion. "This will put to rest for a little while the prospect of Greece leaving the euro."
Volatility declined as stocks advanced. The Nikkei 225 Volatility Index tumbled 14% to 25.02 today, the biggest drop since March. The reading indicates traders expect a swing of about 7.2% on the gauge over the next 30 days.
Stocks rose after Greece's pro-bailout New Democracy and Pasok parties took 162 seats in the 300-member parliament, according to the official projection by the Interior Ministry in Athens. The results eased concern that Alex Tsipras's Syriza party would take control of the Greek government and reject austerity measures needed to qualify for international aid.
Leaders from the Group of 20 nations will boost the US$430 billion firewall the International Monetary Fund announced in April, host President Felipe Calderon said in Mexico. European governments indicated a willingness to adjust the terms of Greece's bailout package as long as a new government swiftly emerges from the closely fought election.
In Japan, Prime Minister Yoshihiko Noda approved the first restart of nuclear reactors shut for safety checks after the Fukushima disaster last year.
The yen weakened as much as 1.3% against the euro, the biggest decline among major currencies. (Bloomberg/T03/aph)
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