Asian Stocks Up After Bank of England Easing Signals
June 30 2016 - 11:30PM
Dow Jones News
Asian stock markets were broadly higher on Friday after Bank of
England Gov. Mark Carney signaled a stronger possibility of a
summer rate cut to support the U.K. economy in the wake of the
country's vote last week to exit the European Union.
Japan's Nikkei Stock Average was up 0.7% while Australia's ASX
200 was 0.6% higher. South Korea's Kospi was up 0.8%. New Zealand's
NZX 50 was 0.1% higher.
On the mainland, the Shanghai Composite Index was up 0.5%. Hong
Kong's stock market was closed for the Special Administrative
Region Establishment Day holiday, marking its transfer from the
U.K. to China.
Britain's central bank chief said Thursday the U.K.'s growth
will slow in coming months and that further interest-rate cuts and
other measures will be needed, even as he declared his confidence
in the country's ability to adapt to a future outside the European
Union. His comments helped boost U.S. and European stocks
overnight.
After plummeting last week on the vote result, Asian shares have
rallied this week as concerns over the decision began to abate.
"The U.K's economy isn't that big. It's unlikely that the impact
of an exit would reverberate through the entire global economy and
worsen it," said Soichiro Monji, general manager of economic
research at Daiwa SB Investments.
Mr. Monji said the U.K.'s economy might be even helped by a
cheaper British pound, and the outlook is actually shakier for the
European Union, where politicians in some other countries have also
called for referendums on EU membership.
The British pound was at 137.24 yen, weaker than late Thursday'
s Y137.36 in New York. The sterling was at $1.3343, compared with
$1.3311 in late New York trading.
The Bank of Japan's latest tankan poll, a quarterly survey of
business confidence, showed Friday the sentiment among Japanese
banks hit its lowest point in three-and-a-half years in the
April-June quarter while manufacturers' sentiment remained solid in
the second quarter.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
July 01, 2016 00:15 ET (04:15 GMT)
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