The euro jumped and Asian stocks pared losses Tuesday after euro zone policy makers agreed to a second bailout package for Greece in marathon talks that went deep into the Brussels night.

The single currency jumped around half a cent after euro zone finance ministers approved a 130-billion-euro rescue, with strict conditions, that averts an imminent default by Athens.

Reaction from share and commodity markets, which had rallied in recent days on hopes of an agreement on Greece combined with an easing of monetary policy by China, was more muted.

The Greece bailout agreement has already been priced in by the market, said Yoshihiko Tabei, chief analyst of capital markets at Kazaka Securities, before the announcement.


Euro zone crisis in graphics:

Oil in various currencies:


MSCI's broadest index of Asia Pacific shares outside Japan <.MIAPJ0000PUS> pared losses to stand down 0.1 percent after two European Union officials told Reuters an agreement had been reached.

Tokyo's Nikkei share average <.N225> was also 0.1 percent lower at the mid-session break. <.T>

Both indexes have started 2012 strongly, with the MSCI benchmark up 13.5 percent and the Nikkei up 12 percent for the year-to-date, outperforming an 8 percent rise in Wall Street's S&P 500 <.SPX>.

The euro raced up 0.3 percent to around $1.3285, having been down around 0.3 percent before the deal.

In commodity markets, Brent crude futures hovered near $120 a barrel after reaching an 8-month high Monday, partly driven by Iran's cutting off of oil exports to Britain and France.

Copper, which had posted strong gains on expectations of more lending for infrastructure projects in China after the central bank's weekend move to loosen monetary policy, gained another 1.5 percent to around $8,360 a tonne. Gold edged up to around $1,735 an ounce.

(Editing by Ramya Venugopal)