Nikkei hits 1-month high on Greece election relief

TOKYO, Jan 27 (Reuters) – Japanese share prices rose to one-month highs on Tuesday on relief that Greece’s election outcome did not roil European financial markets as much as initially feared.

The Nikkei rose 1.7 percent to 17,768.30 points, its highest close since late December and extending its recovery from a 2-1/2-month low hit on Jan. 16 to 7.1 percent.

Gains were led by precision machinery makers and financial shares.

Market players were also betting that stimulus from the European Central Bank will keep money sloshing around in financial markets, and that upcoming earning reports will show Japanese exporters benefitting from a weaker yen while importers reap a windfall from a sharp slide in oil prices.

Both the broader Topix and the JPX-Nikkei Index 400 also gained 1.7 percent.

(Additional reporting by Tomo Uetake; Editing by Edwina Gibbs & Kim COghill)