Asian shares bolstered by hopes for Greek deal

TOKYO (Reuters) - Asian shares and U.S. stock futures rose on Tuesday, bolstered by hopes that Greece's latest budget proposals would stave off a debt default and lead to a deal with lenders later this week.

MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> was up 0.3 percent, while Japan's Nikkei share average <.N225> jumped 1.2 percent to a fresh 15-year high as investors bought back shares they sold in three losing weeks.

"The fact that it appears that something will happen for Greece is really lifting the market's mood," said Ayako Sera, senior market economist at Sumitomo Mitsui Trust Bank in Tokyo.

"But these moves up are not based on fundamentals. The upside is likely to be heavy, as concerns about global growth remain," she said.

U.S. stock futures rose about 0.2 percent after Wall Street posted solid gains on Monday, with the Nasdaq Composite <.IXIC> closing at a record high.

European Council President Donald Tusk called the Greek proposals "a positive step forward," and said the aim was to have Eurogroup finance ministers approve a cash-for-reform package on Wednesday evening, and put it to euro zone leaders for final endorsement on Thursday morning.

Stocks gained even as upbeat U.S. data backed the view that the U.S. Federal Reserve is on track to raise interest rates as early as September.

The National Association of Realtors said existing home sales rose to their highest in five-and-a-half years, increasing 5.1 percent to an annual rate of 5.35 million units, and adding to evidence that U.S. economic momentum picked up in the second quarter after a sluggish start to the year.

The dollar inched up on the day against the yen to 123.46 , though it remained well below a 13-year high of 125.86 yen hit earlier this month.

The euro was steady on the day at $1.1335, below its one-month high of $1.1440 hit on Thursday as some cautioned that steps in a positive direction did not guarantee an eventual solution to Greece's debt crisis.

"Although momentum appears to have turned positive, if there is no progress on negotiations for a programme extension before the 30 June deadline, the ECB may have to increase haircuts on Greek assets, which could, in turn, precipitate the need for capital controls," strategists at Barclays said.

Yields on both German Bunds and U.S. Treasuries rose as prices fell in line with less demand for safe-haven fixed income assets. Expectations of higher U.S. interest rates this year also weighed on U.S. debt prices. The benchmark U.S. 10-year note yield was last at 2.38 percent, up from its U.S. close of 2.36 percent.

Chinese markets will be a key focus for regional investors when they resume trading later in the day after a public holiday on Monday.

China's main stock indexes had their worst week since the global financial crisis of 2008, with both the CSI300 index <.CSI300> of the largest listed companies in Shanghai and Shenzhen and the Shanghai Composite Index <.SSEC> plunging over 13 percent.

Later on Tuesday, the HSBC China Flash PMI for June will provide the latest clue on the strength of China's factory activity.

In commodities trading, U.S. crude futures slipped about 0.3 percent to $60.21 a barrel on renewed concerns of a global oil glut, although a forecast for a drop in U.S. domestic crude stocks put a floor under prices.

(Editing by Richard Pullin & Shri Navaratnam)

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