ECB Easing Prospects Move Asian Markets

Asian markets were up overnight Thursday on expectations of a tightening of U.S. economic policy and prospects of new European stimulus moves.

Japan's Nikkei index traded almost 20,000 points after closing down 0.4 percent in the previous session and MSCI's broadest index of Asia-Pacific shares outside Japan edged up about 0.4%.

Wall Street was flat Wednesday ahead of the US Thanksgiving holiday. U.S. markets will be closed Thursday and most of Friday afternoon.

The Hang Seng Index opened above 22,700 points while China's benchmark Shanghai Composite added 0.3 percent in early trading following Beijing’s announcement of new customs policies to help lift trade, such as lowering costs for importers and exporters and restructuring the clearance of goods at customs.

The euro was steady at $1.0622 and the Australian dollar eased 0.4 percent following a quarter that saw business investment decline by worse-than-expected 9.2 percent. South Korean’s Kospi index was up 1%.

USD Index Up

The dollar index, which tracks the greenback against a basket of six rivals, touched an eight-month high of 100.170 overnight after a spate of US economic data reinforced views that the Federal Reserve will raise interest rates next month for the first time in nearly a decade.

Reports of positive durable goods data and jobless claims offset concerns on inflation and consumer sentiment and reinforced investors’ views that the Fed would raise interest rates as expected in December.

According to Dan Heckman, senior fixed income strategist at US Bank Wealth Management in Kansas City, Missouri. "We see very little to upset or upend the December rate hike."

Cina Coren
Cina Coren is a former Wall Street broker and financial advisor. She holds a Master's degree in Communications and spent many years writing for international news outlets and journalistic publications. Today, Cina spends most of her time writing internet articles and blogs, and reading various newspapers to stay on top of the news.