Global stocks reached near record highs on Friday as markets betted monetary policy would remain loose in the United States, Europe and Japan for quite a while to come. Gold celebrated its biggest one-day rise in nine months with spot gold XAU resting at $1,312.24 an ounce after climbing 3.3 percent at one stage to reach as far as $1,321.70 on Thursday.
Asia
Asian stocks held a six-year high, with the regional benchmark index on course for the longest run of weekly advances since August, as materials and technology companies dropped.
The MSCI Asia Pacific Index (MXAP) is on course for the longest weekly winning streak since August after closing yesterday at the highest level since June 2008. The gauge traded at 13.4 times estimated earnings yesterday compared with 16.6 for the Standard & Poor’s 500 Index and 15.6 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.
Australia’s S&P/ASX 200 Index lost 0.5 percent. South Korea’s Kospi index fell 1.1 percent as Lotte Chemical declined 3.5 percent to 177,500 won and Samsung Electronics retreated 1.7 percent to 1.3 million won.
New Zealand’s NZX 50 Index slid 0.7 percent and the Shanghai Composite Index retreated 0.5 percent. Hong Kong’s Hang Seng Index added 0.2 percent, while Singapore’s Straits Times Index dropped 0.2 percent. Taiwan’s Taiex Index fell 0.2 percent, with losses limited as HTC rose 2.6 percent to NT$136.50.
Japan's Nikkei firmed 0.3 percent to a fresh five-month peak, while the broader TOPIX brought its gains to more than 10 percent in just the past four weeks.
Wall Street
Wall Street was more circumspect, though data on jobless claims and regional U.S. manufacturing continued to show improvement. The Dow ended up 0.09 percent, while the S&P 500 gained 0.13 percent and the Nasdaq lost 0.08 percent.
The revival in risk appetite follows Wednesday's decision by the U.S. Federal Reserve to recommit to keeping rates near zero for some time to come. Federal Reserve Chair Janet Yellen sounded unconcerned by inflation despite a recent pick-up in price pressure and said that she expects U.S. interest rates to stay near zero for a “considerable time” after stimulatory bond buying ends.
Futures on the S&P 500 dropped less than 0.1 percent today after the equity index climbed yesterday to a record high. Reports yesterday showed initial claims for unemployment benefits in the U.S. dropped by 6,000 people to 312,000 in the week to June 14, while a Bloomberg gauge of the U.S. outlook showed Americans are the most optimistic about the economy’s prospects in a year.
Gold producers advanced as bullion headed for its longest run of weekly advances since March. Zijin Mining Group Co., China’s biggest gold producer, climbed 2.9 percent to HK$1.75 in Hong Kong. Newcrest Mining Ltd. (NCM) gained 4.1 percent to A$10.82 in Sydney.
US Dollar Dips
The dollar also lost ground against a basket of major currencies, while the British pound reached heights not seen since late 2008 above $1.7000.
The dollar to the yen dropped to 101.88 JPY, while the euro edged up on the dollar to $1.3617.