Asia: Indices rise on Greek agreement and Fed comments

Asian markets finished higher on Thursday after Greek lawmakers approved the austerity measures needed for Athens to enter formal negotiations over its third bailout, and positive remarks from the US Federal Reserve.

Fed chairwoman Janet Yellen said on Wednesday that US interest rates were likely to rise by the end of this year.

The Japan's Nikkei 225 index rose 0.67% in a three-week high driven by a weaker yen. The currency was at ¥123.91 against the dollar.

In political news, the Japanese Government passed a bill which could see troops being sent to fight overseas for the first time since the Second World War. The legislation drove thousands of protesters to gather outside the parliament chanting against the prime minister.

However, defence stocks railled on the news, with Fuji Heavy Industries, an aerospace and ground transportation manufacturer, gaining 0.67%.

Meanwhile in China, the Shanghai composite index was up 0.45% after declining on Wednesday despite better-than expected data.

China's growth remained at 7% during the second quarter of the year despite expectations of 6.9%.

Standard & Poor Rating said on Thursday it expects global corporate demand to peak at $57trn by 2016, a decline of 4% from previous forecasts.

"The Chinese credit growth rate still remains faster than most, but the corresponding risks are rising as well," said Jayan Dhru, global head of corporate ratings and infrastructure at Standard & Poor's.

"We expect Chinese corporations to continue their market dominance by issuing the lion's share of global corporate debt over the next five years."

The ratings agency warned, however, that the rapid growth in debt and potential moral hazard created by state support point to relatively high credit risks in China.

In corporate news, Toshiba fell 1.5% after Reuters reported the technology company expects to pay between $2.4bn and $3.2bn as a result of a probe, which would force its chief executive Hisao Tanaka to resign.

Still in China, Hong Kong's Hang Seng gained 0.33% despite a decline in gaming stocks. Galaxy Entertainment lost 1.97%.

Elsewhere in Australia, the ASX index closed higher 0.59%.

Rio Tinto gained despite cutting its its guidance for 2015 shipments of iron ore due to severe and unseasonal weather.

Meanwhile, its rival BHP Billiton recovered from Wednesday's losses following a $2.8bn writedown on the value of its US onshore oil and gas business.