TOKYO: Asian stocks rose, following a rally in global equities, amid optimism that policy makers will introduce measures to limit the economic fallout from U.K. leaving the European Union.
The MSCI Asia Pacific Index advanced 1 percent to 126.64 as of 9:03 a.m. in Tokyo. A gauge of global equities climbed by most in a week as investors watched for signs that central banks and governments will help ease the post-Brexit market turmoil. Federal Reserve Governor Jerome Powell said global risks have shifted further to the downside after Britain’s vote to exit the EU, introducing new uncertainties that may merit reassessing monetary policy.
Japan’s Prime Minister Shinzo Abe said Wednesday he will mobilize all possible measures, while South Korea on Tuesday proposed a package of fiscal stimulus. Investors are awaiting details on the U.K.’s plan to leave the European Union amid concern the move could disrupt the global economic recovery.
“While central banks assuring investors they’re ready to support the markets help sentiment, it may be too early to turn optimistic,” James Woods, a strategist at Rivkin Securities in Sydney, said by phone. “We’ll probably continue to see heavy volatility. We’ll have to see what unfolds in the U.K. with the political situation after Brexit.”
Japan’s Topix index increased 1.5 percent as the yen traded at 102.60 to the dollar. South Korea’s Kospi index rose 0.4 percent. Australia’s S&P/ASX 200 Index added 0.6 percent. New Zealand’s S&P/NZX 50 Index climbed 1.1 percent. Markets in China and Hong Kong have yet to start trading.
Futures on the FTSE China A50 Index added 0.1 percent in their most recent trading, while those on the Hang Seng Index slipped 0.2 percent. The Shanghai Composite Index closed 0.6 percent higher on Tuesday, emerging as the world’s best performer since the British referendum. The Hang Seng Index fell 0.3 percent, trimming a loss of as much as 1.6 percent that sent the gauge toward its lowest level in a month.
Futures on the S&P 500 Index slipped 0.1 percent. The U.S. equity benchmark index climbed 1.8 percent on Tuesday, the most in nearly four months and rising for the first time since Britons voted to leave the EU.
West Texas Intermediate crude for August delivery rose 0.9 percent in early Asian trading, heading for its second day of advance.
