Asian Morning Briefing: U.S. Stocks Rise

                      LAST    CHANGE   % CHG
DJIA                 18119.8   103.83   0.58%

 Nasdaq              5153.97    36.97   0.72%
S&P 500              2122.85    12.86   0.61%
Japan: Nikkei 225    20428.2   253.95   1.26%
Hang Seng            27080.9   320.32   1.20%
Shanghai Composite   4478.36  -306.99  -6.42%
S&P BSE Sensex       27730.2   414.04   1.52%
Australia: S&P/ASX    5610.2     13.2   0.24%
UK: FTSE 100         6825.67   115.22   1.72%


                    PRICE CHG  YIELD%
U.S. 2 Year             -2/32   0.662
U.S. 5 Year            -14/32   1.669
U.S. 10 Year          -1 0/32   2.376
Australia 10 Year      -19/32   2.962
China 10 Year            0/32   3.640
India 10 Year           -1/32   7.894
Japan 10 Year           -2/32   0.427
German 10 Year        -1 6/32   0.886


                          LAST(MID)  CHANGE
Australia $ (AUD/USD)        0.7724  -0.0004
Yen (USD/JPY)                123.38     0.02
S. Korean Won (USD/KRW)     1101.45     0.07
Chinese Yuan (USD/CNY)       6.2106   0.0001
Euro (EUR/USD)               1.1339  -0.0002
WSJ Dollar Index              85.87     0.02


               LAST   CHANGE  % CHG
Crude Oil      60.01     0.4   0.67%
Brent Crude    64.09    0.32   0.50%
Gold          1185.4   -16.5  -1.37%

        MARKETS AT A GLANCE

        (Data as of approximately 5 p.m. ET)

        SNAPSHOT

        Optimism on Greece helped spur a rally in U.S. stocks, with the Nasdaq Composite closing at a record. Treasurys and gold fell amid a broad shift away from safer assets, and the dollar climbed against the yen and British pound. Oil prices inched higher.

        OPENING CALL

        The New Zealand dollar is quietly drifting lower against the U.S. dollar while most attention is on the eurozone, and the pair is now flirting with levels not seen since July 2010. "In the absence of domestic data releases [Tuesday], offshore developments will remain the main the driver of sentiment," says BNZ strategist Kymberly Martin. She adds that the release of the June China manufacturing PMI has potential to impact the broad market mood.

        EQUITIES

        U.S. stocks advanced, propelling the Nasdaq Composite to a record close, lifted by gains in health-care and financial shares as well as optimism that Greece will eventually reach a bailout deal with its creditors.

        European policy makers said Monday the eurozone is working toward a deal later this week to provide bailout aid for Greece. The policy makers appeared to offer hope that an agreement is still reachable after a monthslong deadlock that has spurred talk of a potential Greek exit from the eurozone.

        The magnitude of market moves in Europe and the U.S. "speak to what the overhang has been over the last month or so as the negotiations continued to deteriorate," said Art Hogan, chief market strategist at brokerage firm Wunderlich Securities.

        Concerns about Greece's financial situation, as well as worries about U.S. corporate earnings, elevated stock valuations and an eventual increase in interest rates have all collided to keep a lid on stock gains this year.

        In the U.S., health-care and financial companies helped lift stocks on Monday.

        Anthem took its bid to buy Cigna public, though Cigna on Sunday said it rejected the offer. Cigna and Aetna are at the same time looking into acquiring Humana, which has privately put itself up for sale. Meanwhile, UnitedHealth Group recently made a takeover approach to Aetna.

        Anthem shares gained 3.6%. Cigna rose 4.7% and Aetna climbed 3.2%.

        The pickup in merger and acquisition activity, as well as a rise in the yield of the 10-year Treasury note, lifted shares of financial companies, traders said.

        "The M&A shows capital markets are healthy and people are willing to make moves," said RJ Grant, associate director of equity trading at Keefe, Bruyette & Woods. He added that this sentiment was helping banks and other firms that advise on these deals and make fees on them.

        In corporate news, natural-gas pipeline giant Williams has rejected an unsolicited buyout offer from Energy Transfer Equity worth $48 billion but is open to other offers. Williams shares jumped 26%, while those of Energy Transfer Equity slipped 4.9%.

        In Asian trading Monday, markets made tentative gains as investors shrugged off concerns about Greece's debt situation and awaited the outcome of negotiations with its creditors.

        FOREX

        The dollar climbed against the yen and the British pound as higher U.S. Treasury yields boosted the U.S. currency's allure.

        Apparent progress in negotiations between Greece and its international creditors calmed markets and encouraged investors to move into higher-yielding assets.

        The dollar has traded in tight ranges against rivals over the past three sessions as investors have grown less certain about the Federal Reserve's timing for raising interest rates for the first time in almost a decade. Last week, the Fed lowered its forecasts for growth over the rest of this year, as well as for interest rates in 2016 and 2017, a move that caused investors to push back their expectations for higher rates toward the end of 2015, and even 2016, from as early as September.

        On Monday, though, U.S. Treasury yields gave the dollar a small boost, said Carl Forcheski, director in corporate foreign exchange sales at Societe Generale.

        "It's a drift higher for the dollar," Mr. Forcheski said. "With the Fed being fairly clear in wanting to keep its options open and not feeling compelled to do anything dramatic for interest rates or monetary policy, investors aren't pouring in."

        Meanwhile, the euro gained against most currencies on signs that Greece and its international creditors have moved closer to a resolution.

        BONDS

        U.S. Treasurys stumbled as an upbeat housing report and signs of progress in Greece's bailout negotiations diminished investors' demand for safer assets.

        Prices declined though most of the session, hitting the day's lows by late-afternoon trading.

        Focus was centered around Greece as its government faces looming debt payments it can't meet without more help from creditors. Discussions of terms for another bailout package have been going on for weeks, at times fueling broad flights into haven U.S. government bonds.

        But comments Monday suggested Greece and its international lenders are closer to a deal. The beleaguered nation's latest proposal is reported to include potentially key concessions that bridge the gap between what Greece wants and what its creditors are demanding. The European Central Bank also increased an emergency credit line to Greek banks amid deposit withdrawals.

        "It seems like a lot of those ministers think they'll have an agreement, so optimism set in. That definitely affected Treasury price action," said Sean Murphy, senior Treasurys trader at Society Generale. "We're not beholden to what happens there, but it's a roadblock that gets lifted and prepares the market for rate rises."

        Monday's losses in Treasurys came amid a broad shift away from safer assets and into riskier, better-yielding investments.

        Still, bond analysts warn that the situation remains fluid. If history is any guidance, Greece's bailout talks will likely involve plenty of back-and-forth and sometimes contradicting reports.

        "The Greek drama remains in focus as headlines over the weekend appear to suggest that progress is being made...but we caution that the market could turn on a dime on a single negative headline," said Gennadiy Goldberg, U.S. rates strategist at TD Securities.

        Adding to the pressure on U.S. Treasurys, the National Association of Realtors reported sales of existing U.S. homes rising 5.1% in May, their strongest pace in nearly six years.

        The bond market also faces supply this week, with the U.S. slated to sell a combined $90 billion in notes maturing in two, five and seven years.

        COMMODITIES

        Oil prices eked out a gain as investors weighed concerns about ample crude-oil supplies against hopes that Greek debt negotiations would succeed.

        "The second quarter of 2015 is winding down with little change to show for it," said energy brokerage Powerhouse in a note. "Prices have moved into a slow grind waiting for the other shoe to drop."

        Many crude-oil cargoes in the Atlantic Basin, which includes North Sea and West African oil, are searching for buyers, an indication of weak demand. Demand for crude oil is typically strong in the summer as refineries run at high rates to produce gasoline and other fuels, so the tepid demand is "a worrying sign for fall," when refinery activity slows down, said Morgan Stanley in a note.

        On Monday, European policy makers appeared to offer hope that a deal on bailout aid for Greece was within reach. Failure to clinch a deal could put Greece on the road to bankruptcy and an exit from the eurozone. If no deal is reached and Greece leaves the euro, this could mean lower oil prices if the news strengthens the dollar, analysts said. A stronger dollar makes oil, which is traded in dollars, more expensive for buyers using foreign currencies.

        In other commodity news, gold prices fell as hopes for a deal between Greece and its creditors drove investors out of the safe-haven metal, while large stockpiles and potentially weak demand pushed platinum and palladium to multi-year lows.

        TODAY'S HEADLINES

        Greek Proposals Lift Hopes of Deal

        Greece's creditors suggested for the first time that a deal to avert the country's bankruptcy was in sight after an 11th-hour proposal submitted by Athens made a significant concession on pension cuts.

        U.S. Existing-Home Sales Rise 5.1% in May

        New momentum for sales of previously owned homes was a sign the housing market remains strong after sales fell in April.

        Williams Cos. Shares Rally Following Rejection of Energy Transfer Offer

        Shares of the natural-gas pipeline giant surged after it rejected a nearly $50 billion buyout offer.

        (MORE TO FOLLOW) Dow Jones Newswires

        June 22, 2015 17:30 ET (21:30 GMT)

        U.S.-China Talks Held Under Cloud of Suspicion
        Annual meetings between top U.S. and Chinese officials on security, strategic and economic issues began under a cloud of mistrust and acrimony.
        Iran, West Say Deadline on Nuclear Talks Won't Block Deal
        Iranian and Western officials said they may not seal a final nuclear deal by the June 30 deadline but insisted they are committed to trying to unblock the remaining obstacles during talks in coming days.
        EU Extends Sanctions on Russia
        EU foreign ministers extended broad economic sanctions on Russia until the end of January 2016, giving the bloc time to gauge if the Kremlin will fully implement its side of February's Minsk cease-fire and peace plan.
        Yellen Seeks Assurance on Handing Over Information-Leak Details
        Federal Reserve Chairwoman Janet Yellen told House Republicans the Fed will turn over information related to a 2012 leak of confidential information only when investigators assure them it won't impede a criminal investigation.
        GM to Invest $245 Million, Add Jobs for New Product in Michigan
        General Motors said it would invest $245 million and add 300 jobs at a Michigan plant that was saved during the 2009 government bailout of the company, with the money coming to outfit the factory for the production of an undisclosed vehicle.
        Fukushima Still Roils Toshiba
        An accounting probe shows that Toshiba continues to struggle with the financial aftereffects of the 2011 Fukushima Daiichi nuclear disaster.
        Taliban Attack Afghan Parliament
        Afghan security forces repelled a Taliban attack on Afghanistan's parliament building that left 31 civilians wounded. Police killed seven attackers.
        RECENT DJ EXCLUSIVES
        Gun Maker Colt Delays Showdown With Bondholders
        China's Plan for Local Debt Amounts to a Bailout
        Hedge Fund Citadel Prepares to Launch New Stock-Picking Unit
        Bouygues May Resist Cutting Its Telecoms Line--Heard on the Street
        New Greek Bailout Proposals See Savings of 0.4% of GDP from Pensions in 2015--Officials
        TODAY'S CALENDAR
        (Times in GMT, followed by country and event)
        0000 AUS Apr Australia Conference Board Leading Index
        0130 AUS Q1 Residential Property Price Indexes: Eight Capital Cities
        0135 JPN Jun Japan Flash Manufacturing PMI
        0145 CHN Jun HSBC China Flash Manufacturing PMI
        0300 SKA Q1 Non-financial company outstanding debt
        0500 SIN May CPI
        0645 FRA Jun Monthly business survey (goods-producing industries)
        0700 FRA Jun France Flash PMI
        0730 GER Jun Germany Flash PMI
        0800 TAI May Export Orders
        0800 EU Jun Eurozone Flash PMI
        0800 ITA Apr Industrial turnover & orders
        0900 ITA Apr Retail Sales
        1000 UK Jun CBI Monthly Industrial Trends Survey
        1145 US The Retail Economist/Goldman Sachs Weekly Chain Store Sales Index
        1230 US May Advance Report on Durable Goods
        1230 US Q1 Travel & Tourism Satellite Account
        1230 US Federal Reserve Governor Jerome Powell participates in panel discussion at Wall Street Journal Breakfast
        1255 US Johnson Redbook Retail Sales Index
        1300 US Apr U.S. Monthly House Price Index
        1345 US Jun US Flash Manufacturing PMI
        1400 US May New Residential Sales
        1400 US Jun Richmond Fed Business Activity Survey
        2030 US API Weekly Statistical Bulletin
        2350 JPN May Bank of Japan Monetary Policy Meeting Minutes
        2350 JPN May Services Producer Price
        (END) Dow Jones Newswires
        June 22, 2015 17:30 ET (21:30 GMT)

#FX
#Forex
#SaleForex
#AsianMorningBriefing
#US_StocksRise