Asian stock markets rose Thursday, with investors feeling bold enough to wade into risky assets after European leaders reached an agreement on a plan to reduce Greece’s massive debts.
Japan’s Nikkei 225 index rose 0.5 percent higher at 8,795.28. South Korea’s Kospi index added 1 percent to 1,913.07 and Hong Kong’s Hang Seng index gained 1.1 percent at 19,273.66. Benchmarks in Taiwan, Singapore and the Philippines also rose.
Early Thursday, European leaders agreed on a plan to provide Greece with more rescue loans to help relieve its crushing debt obligations. European Union President Herman Van Rompuy said the deal will reduce Greece’s debt to 120 percent of its GDP in 2020. Under current conditions, it would have grown to 180 percent.
Strong earnings reports also propelled stocks higher.
Shares of Hong Kong—listed Agricultural Bank of China, one of the country’s four major state—owned commercial lenders, jumped 3.6 percent after the Beijing—based bank announced its third—quarter profit rose 40 percent on growth in interest and fee income.
Anhui Conch Cement, China’s largest cement producer by output, jumped 6.3 percent, a day after announcing its net profit more than doubled in the third quarter of 2011.
Meanwhile, strong economic reports helped send Wall Street higher on Wednesday.
The Dow Jones industrial average gained 1.4 percent to 11,869.04. The S&P 500 index rose 1.1 percent to 1,242. The Nasdaq composite added 0.5 percent to 2,650.67.
Reports in the U.S. showed businesses ordered more heavy machinery and other long—lasting manufactured goods last month. That indicates businesses are still spending on equipment despite worries about a weak economy and Europe’s debt problems. Sales of new homes rose in September after falling for four straight months.
