ASIA-Shares to rise as equities in favour on reduced risk

WELLINGTON: Asian stocks are seen climbing higher on Monday, after U.S. markets posted their best week in two years on easing debt and economic fears, as momentum swings in behind riskier assets.

The main Wall Street indices closed up as much as 1.5 percent for the day, with the benchmark S&P500 gaining 5.6 percent for the week. The market will be closed on Monday for the Independence Day holiday.

A run of solid data, coming on the back of a temporary resolution to Greece's debt crisis, has lifted the mood on Wall St after a torrid month.

On Friday, the pace of growth in manufacturing picked up for the first time in four months, with an index of national factory activity rising to 55.3 in June from 53.5 in May, Institute for Supply Management (ISM) data showed.

Asian stocks listed on Wall Street rose 1.07 percent while world stocks, as measured by the MSCI world equity index, rose 0.94 percent, and the Thomson Reuters global stock index was 0.85 percent higher.

British and European shares added 0.7 percent with the vote to pass key austerity measures in Greece having a positive effect on sentiment.

The euro also capped a stellar week against the U.S. dollar, as markets look to the European Central Bank interest rate meeting due later this week.

Japanese markets are set to start higher, but technical resistance could weigh on the markets. The Nikkei is eyeing the 10,000 level, futures traded in Chicago 150 points above the last closing level in Osaka.

Australian stocks are seen rising, with share price index futures up 1 percent at a 42.8 point premium to the close of the underlying S&P/ASX 200 index. – Reuters