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Stocks rise to record, BOJ holds policy before ECB

Sydney - Asian stocks climbed for a ninth straight day, spurred by fresh all-time highs for US equities and as the Bank of Japan maintained its mega monetary stimulus.

The Australian dollar reversed an advance that saw it jump closer to 80 US cents after a jobs report.

Equities from Tokyo to Sydney climbed, with the MSCI All-Country World Index trading at a record high. With the Bank of Japan delaying the time-frame for reaching its inflation target - a sign its stimulus is in place for a long time to come - attention now turns to the European Central Bank’s meeting for clues on policy paths.

Oil held onto gains as stockpiles decreased.

While the ECB is also forecast to keep policy on hold on Thursday, a report that the bank 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 program as the economic recovery expands.

Meanwhile, US benchmark bond yields are falling this week and the dollar is weaker as investors pare expectations for progress on President Donald Trump’s agenda that may have given the economy a boost.

Amid fiscal uncertainty, markets have trimmed US interest rate-increase expectations for the Federal Reserve to less than 50% by year-end despite assertions from policy makers that another hike seemed appropriate.

Here are the main moves in markets:

Stocks

Japan’s Topix index rose 0.7% and Australia’s S&P/ASX 200 Index climbed 0.6%. Hong Kong’s the Hang Seng Index added 0.3%, while the Shanghai Composite Index was up 0.2%.

S&P 500 futures were little changed after the underlying gauge rose 0.5% to a record 2 473.83 on Wednesday.

The VIX index closed below 10 for a record fifth consecutive day.

Currencies and bonds

The Aussie traded at 79.39 US cents. It reached a two-year high of 79.89 cents after a characteristically volatile monthly jobs report for June showed a surge in full-time employment.

It’s the best-performing G-10 currency this year, having climbed more than 10%. The yen traded at 112.07 per dollar.  

Commodities

WTI crude was flat after surging 1.5% on Wednesday when government data showed US crude and gasoline stockpiles continue to fall, allaying anxiety about a supply glut. The Bloomberg Commodity Index advanced 0.6% on Wednesday to the highest since the end of May.

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Rand - Dollar
18.88
+0.3%
Rand - Pound
23.82
+0.4%
Rand - Euro
20.38
+0.3%
Rand - Aus dollar
12.30
+0.3%
Rand - Yen
0.12
+0.3%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
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