Australian shares rose 0.8 percent on Tuesday after euro zone finance ministers reached a deal to give Greece a second bailout package, buoyed also by higher metals prices and a profit surprise at steelmaker OneSteel. Euro zone finance ministers struck a deal on Tuesday that provides Athens with new financing of 130 billion euros and aims to cut Greece's debt to just over 120 percent of GDP by 2020.
"Relief that Greece will live to fight another day saw risk assets respond positively," said Stan Shamu, market strategist at IG Markets. "However, the initial euphoria did not last long, as many who had been in positions hoping for this announcement took profits, with the event looking more and more like a 'buy the rumour, sell the fact' type event," he added.
The benchmark S&P/ASX 200 index rose as much as 1 percent after the Greek bailout fund was approved and ended the day up 0.8 percent at 4,291.2, according to the latest available data. The benchmark rose 1.4 percent on Monday. New Zealand's benchmark NZX 50 index rose 0.7 percent to 3,337.3 points.
A rise in metal prices and a better-than-expected first-half profit result from OneSteel, Australia's second-largest steelmaker also helped sentiment. Shares in OneSteel rose 12.3 percent to a four-week high after underlying profit beat forecasts due to its growing mining business, and it projected an improvement in its steel business performance in the second half. Index heavyweights, Rio Tinto and BHP Billiton both rose over 1 percent.