Asian stocks rose with Europe rally, euro frets
On Friday, Asian stocks increased as Euro tended its losses. This transpired after Europe's two most influential banks assured venture capitalists. The banks said they were not in a hurry to wind down the financial stimulus.
MSCI's broadest index of Asia-Pacific stocks outside Japan boosted by 0.3%. Tokyo's Nikkei average acquired 1.3%.
Australian stocks gained 1.1% while their South Korean equivalent rose by 0.7%.
Kim Young-il, an analyst at Daishin Securities, said, "Global markets reacted positively to comments from the European Central Bank (ECB) and this momentum will certainly help the market today."
The European Central Bank announced that it would let the interest rates remain at record lows. It committed to keep it that way for a long period and would even reduce the rates further. On the other hand, the Bank of England warned investors that they were being too quick to risk on greater UK rates.
"The unprecedented adoption of forward guidance by the ECB further increases the divergence in monetary policy versus the prospect of Fed tapering," Olivier Korber, strategist at Societe Generale, said. "The topside risk in euro short rates and therefore in EUR/USD is drastically reduced for the year to come."
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