TOKYO: Asian stocks climbed today amid new symbols of resilience in the US economy, while the euro lowered near two-year lows before a much-expected meeting of the European CB that could open the door to more spurs.
Tokyo’s Nikkei climbed 0.7 per cent, touching a new seven-year high, with sentiment buoyed by media projections suggesting a strong win for Japanese premier Shinzo Abe’s coalition at the December 14 election. A victory for Abe could lead to a new mandate for his “Abenomics” policies to revive the economy.
“There’s activity in anticipation of extremely promising conditions being born,” said Hiroyuki Nakai, chief strategist at Tokai Tokyu Research Centre Co in Tokyo.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4 per cent, while Australian shares were up 0.5 per cent.
The improved mood was helped by the Dow and S&P rising to record highs overnight after private payrolls and services sector data underscored the US economy’s resilience.
That contrasted with the gloom in the euro zone, with a survey showing business activity grew less than expected in November and raised the spectre of another economic contraction.
The euro struggled as a result. It fetched US$1.2311 after falling to a two-year low of US$1.2301 overnight on the view that the ECB will be forced to inject even more stimulus to prop up the tottering euro zone economy.
While a full-blown quantitative easing programme after the ECB policy review today is seen as unlikely, some believe the central bank may lay the groundwork for such a move early next year.
