Asia stocks mostly climb on ECB easing prospects
Asian markets were mostly higher on Thursday on the prospect of fresh European stimulus even as new data reinforced expectations for tighter U.S. monetary policy.
The euro traded above the $1.06 handle, rebounding after hitting a seven-and-a-half month low of $1.0565 overnight, amid reports on Wednesday that European Central Bank (ECB) officials are considering unconventional easing measures, such as introducing a two tiered deposit rate, Reuters reported.
“According to the report, large depositors would be charged more than small depositors. This plan isn’t likely to receive much support from Germany and France whose banks widely use the ECB’s facility. However it is clear from today’s price action that while investors have considered more stimulus, they have not considered how aggressive or creative they will be,” said Kathy Lien, managing director of FX strategy at BK Asset Management.
Those stimulus expectations saw the STOXX Europe 600 rally 1.3 percent and the German DAX close up more than 2 percent overnight.
Meanwhile, positive data on U.S. personal income, durable goods orders and weekly jobless claims released on Wednesday will likely boost the Federal Reserve’s resolve to hike interest rates next month, analysts said. U.S. stocks closed narrowly mixed in low volume tradefollowing the data deluge. Wall Street will be closed Thursday for Thanksgiving and the stock market closes at 1 p.m. ET on Friday.
Hong Kong up 0.5%
The Hang Seng Index pared gains after rallying as much as 1 percent in the morning while China’s benchmark Shanghai Composite dipped 0.2 percent in afternoon trade, erasing all its earlier gains. News on Wednesday that Beijing announced fresh policies aimed at boosting foreign trade, such as lowering costs for importers and exporters, was unable to boost sentiment.
Citic Securities eased 1 percent in Shanghai after the securities association accusing the brokerage of overstating its derivatives business by more than $166 billion. But other brokerages rose, withEverbright and Haitong Securities 0.2 and 1 percent higher respectively.
In Hong Kong, blue-chips Petrochina, Hong Kong Exchanges and HSBCspiked nearly 1 percent each.
Nikkei adds 0.5%
Japan’s Nikkei index closed in sight of 20,000 points, but the market showed little reaction to Prime Minister Shinzo Abe’s announcement on Thursday that corporate taxes may be cut by more than planned next fiscal year
Apple suppliers Japan Display and Minebea slumped more than 7 percent each on reports that Apple plans to introduce organic light-emitting diode (OLED) displays for iPhones.
Automakers Honda Motor, Nissan and Toyota Motor rallied more than 1 percent each.
In a report on Wednesday, the government lowered its assessment of November capital expenditure for the first time in a year, citing “pockets of weakness” in the overall economy.
ASX 0.3% higher
Australian shares pared gains after rallying as much as 1 percent earlier but still managed to recoup all of Wednesday’s losses thanks to a rally among financials. Commonwealth Bank of Australia, AMP and Westpacled gains by more than 1 percent each following a previous session of profit-taking.
BHP Billiton lost nearly 4 percent after mud from the miner’s recent dam burst in Brazil was deemed toxic by the United Nations’ human rights agency on Wednesday.
The Australian dollar eased as much as 0.4 percent after domestic business investment slumped by the most on record last quarter, declining by a worse-than-expected 9.2 percent.
Kospi up 1%
South Korean shares traded above 2,000 points after November consumer sentiment shot to a 14-month high, according to central bank data released before the market open.
Large-cap stocks led the gains, with Samsung Electronics nearly 3 percent higher while Hyundai Motor and Kia Motors added 0.7 percent each.
PSI flat
Philippine stocks were little changed around 7,063 points after third-quarter gross domestic product expanded 6 percent on year following a revised reading of 5.8 percent in the previous quarter.
Source: CNBC – Asia stocks mostly climb on ECB easing prospects
