The MSCI Asia Pacific Index added 0.4 per cent to 141.63 as of 9:10 a.m.in Tokyo after dropping 3.7 per cent last week.
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Last week, the euro rallied against the dollar and the yen on Friday amid renewed optimism that Greece would reach a deal on a new bailout with its creditors, allowing the country to remain on in the euro zone.
Euro zone leaders had told the cash-strapped Greek government it must enact key reforms this week to restore trust before they would talk of financial rescue. Meanwhile, Reuters expects a 15% annual drop in imports after a 17.6% drop in May, while exports might slide 0.2% from a 2.5% dip last month. Should either crisis worsen, however, investors may pull their money out of riskier investments and direct it toward perceived safe havens, including the USA dollar.
Demand for sovereign debt lifted USA 10-year Treasury futures 8 ticks, while the S&P E-MINI USA stock contract lost 0.3 percent.
Aiding the euro were rumours the European Central Bank had agreed to delay a Greek repayment of €3.5bn that had been due on July 20.
Sweeping measures including tax and pension reforms must be enacted by Wednesday night and the entire package endorsed by the Greek parliament before talks could start.
Asian shares surged during the trading session today on the back of the rally in Chinese stocks which made many believe that the worst for the markets in China was behind it and was seen as a huge positive. Nikkei rose 1.2% after posting a near-4% loss for the week ending Friday despite a slightly stronger currency. The Shanghai Composite Index rose 2.4 percent and a gauge of mainland companies in Hong Kong climbed 0.6 percent.
Sentiment will be tested by economic data on China’s trade flows later on Monday, and the always sensitive gross domestic product report on Wednesday.
As if Wednesday were not already busy enough, Federal Reserve Chair Janet Yellen is also due to appear before the House Financial Services Committee.
In commodity markets, gold failed to get much of a safety bid, easing over a dollar to $1,160.80 an ounce.
Oil fell as Iran and world powers closed in on a nuclear deal, while Chinese stocks led Asian shares higher.
Brent crude sank $1.24 to $57.49 a barrel and United States crude shed 91 cents to $51.83.
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“Develop a significantly scaled up privatization program with improved governance”.
