Publications
Partners
Singapore - Asian equities maintained their rally, rising to the highest since 2007 as the Bank of Japan (BoJ) kept its monetary stimulus programme unchanged ahead of its European counterpart’s policy decision later in the day.
The MSCI Asia Pacific Index rose for a ninth day in a row, adding 0.2% to 159.26 as of 08:02, heading toward its longest winning streak since April 2015 amid a continued string of record highs in US stocks.
Financial shares led the advance as Morgan Stanley reported better-than-expected earnings results. Energy companies were the second best performer on the benchmark as oil holds gains near $47 a barrel as US crude and gasoline stockpiles extended declines.
Japan’s Topix index extended its gains as much as 0.8% after the midday break as the BOJ maintained its monetary stimulus policy and pushed back the projected timing for reaching 2% inflation for the sixth time.
The European Central Bank, like the Bank of Japan, is expected to keep the current “accomodative” policy environment unchanged and it might continue to guide market expectations with a “future tapering” plan, Jingyi Pan, market strategist at IG Asia said by phone.
A report that the ECB has been examining options for asset purchases adds to speculation that Mario Draghi will concede that the time is approaching to adjust the bond-buying programme as the economic recovery expands.
SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.
Read Fin24's top stories trending on Twitter: Fin24’s top stories
