ASIA-Shares to gain as Greek vote bolsters optimism

WELLINGTON: Asian stocks are set to open stronger on Wednesday as investors show relief on growing optimism that the Greek government will take the necessary measures to stave off a debt default after winning a crucial confidence vote.

Global stocks had rallied before the late-night vote on expectations that the government would win, which would then see it implement painful austerity measures to qualify for further euro zone assistance to avoid bankruptcy.

Euro-zone finance ministers said the Greek government had until July 3 to approve reforms to get the next installment of 110 billion euros in aid from the European Union and International Monetary Fund.

Wall Street posted solid gains with the main indexes finishing up between 0.9 percent for the Dow Jones and 2.2 percent for the tech-laden Nasdaq, which had its best gain since October.

The CBOE Volatility Index , Wall Street's so-called fear gauge, fell 5.7 percent, to its lowest level in more than a week.

Asian stocks listed on Wall Street rose 1.7 percent, while world stocks, as measured by the MSCI world equity index , gained 1.5 percent.

British and European shares both closed 1.4 percent higher confident that the Greek vote would back the government.

Investors are now looking to the Fed's Open Market Committee which began a two-day meeting, with an announcement expected Wednesday afternoon, followed by Chairman Ben Bernanke's news conference.

The Fed is expected to cut its growth forecast for 2011, but Bernanke probably will continue to argue the slowdown is temporary.

The euro gained after the Greek vote but gains have been tempered by concerns that the tough and unpopular measures may yet stumble at a parliamentary vote next week.

Japanese markets, which had their best day in three weeks on Tuesday as hedge funds engaged in some short-term buying, should post more solid gains, albeit with some caution ahead of the Fed meeting.

Nikkei futures traded in Chicago 90 points above the last closing level in Osaka .

Australian stocks are seen rising with share price index futures up 0.8 percent to 4,543, a 34.8 point premium to the close of the underlying S&P/ASX 200 index. - Reuters