Asian shares edge up as Greek deal gets cautious nod

By Lisa Twaronite

TOKYO (Reuters) - Asian shares and the euro were tentatively higher on Tuesday on hopes that Greece's conditional bailout agreement would bring to an end that country's debt crisis, though caution kept broad gains in check.

Meanwhile, oil prices skidded as the market awaited an announcement on a nuclear deal between Iran and six global powers that could lead to an easing of sanctions against Tehran and a resumption of its oil exports into an oversupplied market.

MSCI's broadest index of Asia-Pacific shares outside Japan was up about 0.1 percent, off earlier highs as Chinese shares slumped.

Shanghai's benchmark composite index was down 0.6 percent, while the CSI300 index of the largest listed companies in Shanghai and Shenzhen slipped 0.9 percent. China stocks had risen for the past three sessions, which raised investors' hopes that Beijing's recent stabilization steps had worked to stem a massive correction.

Japan's Nikkei stock index added 1.6 percent.

Later on Tuesday, Greece's Prime Minister Alexis Tsipras will face a showdown with members of his own party over the bailout agreement, under which Greece can get a possible 86 billion euros ($95 billion) over three years if it can satisfy its European partners that it is meeting their conditions.

The terms imposed by Athens' international lenders led by Germany obliged Tsipras to abandon his pledge to end austerity.

U.S. stock futures were slightly lower, with S&P 500 mini futures down a few ticks from late U.S. levels, after Wall Street jumped on hopes for the Greece deal. All three major stock indexes ended up more than 1 percent, in what some strategists described as a relief rally.

But some said doubts would remain until the proposal is actually accepted.

"Investors did not like that a Grexit is still on the table if Parliament votes no," managing director at BK Asset Management, said in a note to clients.  "The risk is far less now than a week ago but the fact that it is not eliminated puts pressure on the euro."

The euro last traded at $1.1010, up about 0.1 percent on the day. Against the yen, it was slightly higher at 135.90 yen.

The greenback was buying 123.45 yen, steady on the day ahead of congressional testimony by Federal Reserve Chair Janet Yellen on Wednesday that will be closely monitored for any further hints regarding the timing of an interest rate hike.

"The dollar should have a relatively easy time topping 124 yen, especially if Yellen sounds hawkish during the testimony," said Junichi Ishikawa, market analyst at IG Securities in Tokyo.

In commodities trading, U.S. crude slipped about 1.3 percent to $51.50 a barrel, coming under renewed pressure as Iran appeared to be close to a deal with six world powers that would allow it to sell its oil again on the oversupplied world market.

Brent crude dropped about 1 percent to $57.27.

A draft nuclear deal between Iran and six major powers calls for U.N. inspectors to have access to all suspect Iranian sites, including military, based on consultations between the powers and Tehran, a diplomatic source said on Tuesday.

(Additional reporting by Shinichi Saoshiro in Tokyo; Editing by Shri Navaratnam)