Shares in Tokyo gain after retail sales data, investors eye Greece

Investing.com - Shares in Tokyo gained on Thursday as retail sales data showed a gain, but Greater China stocks fell.

The Nikkei 225 rose 0.05% at the break, while the Shanghai Composite eased 0.75% and the Hang Seng index was off 1.44%.

The S&P/ASX 200 fell 0.39%.

In Japan, retail sales rose 5.0% year-on-year in April, the first rise in four months.

The data comes after the government and Bank of Japan earlier this month revised up their assessments of consumption after a long slump caused by the April 2014 tax hike.

In Australia, first quarter total capex fell 4.4% quarter-on-quarter, likely disappointing policy makers who view investment plans a key for the rate outlook.

Overnight, U.S. stocks were higher after the close on Wednesday, as gains in the Technology, Healthcare and Consumer Services sectors led shares higher.

At the close in New York, the Dow Jones Industrial Average added 0.67%, while the S&P 500 index added 0.92%, and the NASDAQ Composite index gained 1.47%.

Data on Tuesday showed that U.S. business investment plans increased, consumer confidence improved and house prices extended gains.

The upbeat data supported the view that the Federal Reserve could start to raise interest rates later in the year if the economy continues to improve as expected.

In Japan, Wednesday’s minutes of the central bank’s April meeting showed policymakers pushed back the time frame for achieving its 2% inflation target, fuelling expectations for additional monetary easing later this year.

The single currency rebounded from session lows following reports the Greek government and its creditors have started drafting a staff-level agreement, boosting hopes that an final agreement on a cash-for-reforms deal is growing closer.

Earlier Wednesday, Athens expressed confidence that it would make a €305 million payment to the IMF due on June 5.

The Greek government had previously warned that it would be unable to make the repayment if a deal with its international lenders was not reached by then.