Sunday, October 9, 2011

Asian stocks higher on ECB, Bank of England moves (AP)

HONG KONG ? Asian stock markets rose strongly Friday following moves by European financial leaders to shore up the region's troubled banks.

Stocks also reacted positively to a surprise move Thursday by the Bank of England to restart an economic stimulus program. There was also a glimmer of hope after a U.S. unemployment benefits report indicated layoffs may be easing.

Japan's Nikkei index rose 1.1 percent to 8,618.96 while South Korea's Kospi jumped 2.7 percent to 1,756.72. Hong Kong's Hang Seng leaped 2.8 percent to 17,649.20 after surging 5.7 percent the day before.

Benchmarks in Taiwan, Singapore, Australia and New Zealand also advanced. Markets in mainland China were closed for a weeklong holiday.

The European Central Bank on Thursday offered new emergency short-term loans to the continent's battered banks. An unlimited amount of 12-month and 13-month loans will be provided to banks, which have faced difficulties borrowing from each other in the short term credit markets because of worries about each other's financial stability.

The ECB, however, also held interest rates steady, disappointing some economists who had hoped for a cut.

On the same day, the Bank of England said it would pump another 75 billion pounds ($116 billion) into the country's stagnant economy, reviving an asset purchase program that injected 200 billion pounds from March 2009 to January 2010. The Bank's decision came earlier and was bigger than many economists had predicted.

The announcements gave hope to global financial markets and were a sharp turnaround from the beginning of the week, when stocks tumbled on fears of that European policymakers were acting slowly and indecisively to contain the debt crisis.

In the U.S., a Labor Department report said unemployment benefit applications rose slightly less than predicted, a signs that layoffs are easing.

In currencies, the euro edged lower to $1.3424 from $1.3429 late Thursday while the dollar rose to 76.67 yen from 76.61.

Oil prices fell, with benchmark crude for November delivery dropping 26 cents, or 0.3 percent, to $82.33. The contract jumped $2.91, or 3.7 percent, to finish at $82.59 per barrel in New York on Thursday.

Brent crude fell 21 cents, or 0.2 percent, to $105.52 in London.

Source: http://us.rd.yahoo.com/dailynews/rss/stocks/*http%3A//news.yahoo.com/s/ap/20111007/ap_on_bi_ge/world_markets

detroit tigers ohio state angus t. jones belgian malinois blue angels texas tech texas tech

No comments:

Post a Comment