Asian stocks up as Greece stays in Euro

Asian stocks jumped, driving the regional benchmark index toward a
one-month high, as concern over Greece exiting the euro eased after
projections showed pro- bailout parties won enough seats to control
parliament.

Canon Inc., a camera maker than gets 31 percent of
sales in Europe, rose 2.5 percent in Tokyo. Inpex Corp., Japan's
biggest energy explorer, advanced 3.4 percent as crude futures jumped
for third day. Lynas Corp. surged 10 percent in Sydney after Malaysia
rejected an appeal by local residents to cancel the Australian miner's
license to run the world's largest rare- earths refining facility in
the Southeast Asian nation.

The MSCI Asia Pacific Index climbed
1.4 percent to 115.78 at 10:19 a.m. in Tokyo, heading for its highest
close since May 15. Almost 14 shares advanced for each that fell in the
gauge. About $5.5 trillion has been erased from share prices around the
world since March amid concern growth is slowing in the U.S. and China,
the two largest economies, and as Europe's debt crisis intensified.

"There's
a short-term sigh of relief," said Belinda Allen, senior investment
analyst at Colonial First State Global Asset Management in Sydney,
which oversees about $145 billion.

"It removes the tail risk
event that we were concerned about in terms of Greece leaving the
European Union immediately. We all know there's still a long and hard
road ahead for Greece and the problems of Europe aren't solved by this
election."

Japan's Nikkei 225 Stock Average and South Korea's
Kospi Index both gained 2.2 percent. Australia's SandP/ASX 200 Index
rose 1.6 percent.

Greek Vote

Futures on the Standard and
Poor's 500 Index added 0.6 percent as official election projections
showed Greece's pro- bailout New Democracy and Pasok parties took 162
seats in the 300-member parliament, easing concern that Alex Tsipras's
Syriza party would take control of the Greek government and reject
austerity measures needed to qualify for international aid.

"Greece's
election is a good result and will provide some short-term relief for
sure," said Nader Naeimi, Sydney-based head of dynamic asset allocation
at AMP Capital Investors Ltd., which manages almost $100 billion.

"This
will put to rest for a little while the prospect of Greece leaving the
euro. I'm positive on risk and on equities, especially with valuations
at extreme cheapness and with very high chances of central banks and
authorities further easing monetary policy."

Concern Europe's
debt crisis would slow economies and prompt bank losses has spurred the
three biggest declines in global equities since they reached a six-year
low in March 2009.

The MSCI All-Country World Index tumbled 16
percent between April and July 2010, fell 24 percent from May through
October 2011, and has declined 9.3 percent since reaching a seven-month
high of 337.14 on March 19, data compiled by Bloomberg show.

The
MSCI Asia-Pacific, which lost 11 percent from this year's highest level
in February through June 15, is trading at 1.2 times book value,
compared with 2.1 times for the SandP 500 and 1.3 times for the Stoxx
600, according to data compiled by Bloomberg.

A number below one means companies can be bought for less than value of their assets. - Bloomberg