BEIJING (AP) – Asian stocks rose Monday following Wall Street’s gains as expectations increased that central banks might ease monetary policy following Britain’s vote to leave the European Union.
KEEPING SCORE: The Shanghai Composite Index rose 1.9 percent to 2,986.85 and Hong Kong’s Hang Seng gained 1.5 percent to 21,098.80. Tokyo’s Nikkei 225 advanced 0.4 percent to 15,747.60 and Sydney’s S&P-ASX 200 gained 0.3 percent to 5,261.00. Seoul’s Kospi added 0.3 percent to 1,994.82 and India’s Sensex advanced 0.7 percent to 27,345.34. Benchmarks in Taiwan, Singapore and New Zealand also advanced.
WALL STREET: U.S. stock indexes ended a turbulent week up 3 percent, coming close to regaining the ground it lost following Britain’s EU vote. It was the market’s biggest weekly gain since November. The Dow Jones industrial average gained 19.38 points, or 0.1 percent, to 17,949.37. The Standard & Poor’s 500 index added 4.09 points, or 0.2 percent, to 2,102.95. The Nasdaq composite rose 19.89 points, or 0.4 percent, to 4,862.57. U.S. markets were closed Monday for the Independence Day holiday.
POST-BREXIT EASING: Investor sentiments were boosted by expectations the Bank of England and European Central Bank might ease monetary policy to shore up flagging growth following Britain’s vote and the U.S. Federal Reserve might postpone a rate hike. The top British central banker, Mark Carney, said last week that easing “will likely be required over the summer” because the economic outlook has deteriorated.
ANALYST’S TAKE: “Prospects that central banks (BoE and ECB) will unleash fresh stimulus in coming months are providing some relief in markets,” said Mizuho Bank in a report. “It is also perceived that the Fed will either delay its rate hike to Q3/Q4 or no hike policy rate at all this year.”