HONG KONG: Asian stocks ascended as the euro toughed to 11-year low after the European Central Bank extended its bond-buying program. Oil soared after Saudi Arabia’s King Abdullah died.
The MSCI Asia Pacific Index climbed 0.6 percent by 11 a.m. in Tokyo, heading for the highest close since Dec. 4. Hong Kong stocks led gains as a survey unexpectedly showed China’s manufacturing contraction slowing. Brent crude advanced 1.8 percent, paring its drop since Jan. 16 to 1.6 percent. Futures on the Standard & Poor’s 500 Index were little changed after the U.S. gauge erased its loss for the year. The euro bought $1.1363, near the lowest since September 2003.
The ECB will buy up to 60 billion euros ($68 billion) of assets a month through September 2016, President Mario Draghi said Jan. 22. The so-called flash China purchasing managers’ index from HSBC Holdings Plc and Markit Economics rose to 49.8 from 49.6 in December, where readings above 50 denote expansion. Prince Salman, named as Abdullah’s successor, will probably continue his predecessor’s policy of maintaining oil production to preserve the country’s 20 percent share of global crude sales.
“Market expectations were high and Draghi managed to surprise even the highest of expectations,” said Nader Naeimi, who helps manage about $125 billion as Sydney-based head of dynamic asset allocation at AMP Capital Investors. “It clearly puts the ECB on the front foot. It should help to stabilize European growth.”
