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By Bloomberg

European stocks advanced with Italian bonds, while German bunds retreated after European Union President Donald Tusk said an agreement was reached at a summit on Greece’s crisis. Oil fell as Iran and world powers closed in on a nuclear deal, while Chinese stocks led Asian shares higher.

The Stoxx Europe 600 Index Index climbed 1.3 percent by 8:26 a.m. in London, while futures on the Standard & Poor’s 500 Index erased a drop to rise 0.4 percent. The yields on 10-year bunds and Treasuries increased at least three basis points, while Italian notes reversed earlier losses. European credit risk fell. The Shanghai Composite Index rose 2.4 percent and a gauge of mainland companies in Hong Kong climbed 1.5 percent. U.S. crude retreated 1.7 percent.

European finance ministers will meet “as a matter of urgency” to discuss how to help Greece meet its financial needs in the short term, Tusk said via Twitter. China reported a smaller-than-estimated drop in June imports, while exports also came in ahead of projections. A deal that will see sanctions against Iran lifted could be announced as soon as Monday.

“There are always risks remaining but the market will concentrate on the main news that an agreement has been reached,” said Daniel Lenz, lead market strategist at DZ Bank AG in Frankfurt. “We will see a strong outperformance of peripheral bonds. One of the main losers, especially in the short term will be German bunds.”

Bunds Drop

Italian notes due in a decade paid 2.08 percent, down five basis points, while similar-maturity Spanish bonds offered 2.06 percent. The rate on Portuguese securities fell 10 basis points, and the yield on Germany’s 10-year bunds was 0.94 percent.

The euro was little changed at $1.1161 after rising as much as 0.3 percent as news of the agreement on Greece broke.

Yields on 10-year U.S. Treasuries rose to 2.44 percent after jumping eight basis points on Friday amid optimism over a Greek deal. The yen, also seen as a haven, fell 0.4 percent Monday to 123.22 per dollar and 137.49 to the euro.

The Stoxx 600 extended last week’s 1.4 percent advance, while the MSCI All Country World Index advanced 0.5 percent, with all 10 industry groups climbing.

MSCI’s Asia-Pacific stock gauge climbed for a third day after falling to an almost six-month low on Wednesday. Japan’s Topix index advanced 1.9 percent and Australia’s S&P/ASX 200 Index slipped 0.3 percent.

The Shanghai Composite climbed as the number of companies halted from trading dropped by more than 400 Monday. As many as half of all listed shares were suspended during the rout that wiped more than $3 trillion of value from the country’s equity market.

Hong Kong’s Hang Seng Index increased 1.4 percent. Price swings on the city’s gauge of mainland companies reached the highest since 2012 last week.

West Texas Intermediate crude slipped to $51.84 a barrel, while Brent dropped 2 percent to $57.58

Four officials party to the Iran talks said legal complexities and technicalities delayed agreement on a deal that could result in an increase in Iranian crude on world markets. The officials asked not to be named in line with diplomatic rules. Iran’s benchmark index climbed 1.2 percent on Sunday to a three-month high.