Asian markets celebrated a dovish ECB outlook, while Europe is rallying after China's latest rate cut
Stocks in Asia settled higher today, bolstered by Thursday's
dovish remarks from European Central Bank (ECB) President Mario Draghi. Well-received economic data also encouraged the bulls; South Korea's third-quarter gross domestic product (GDP) topped expectations, while property stocks rallied in China following a solid report on new home prices. Meanwhile, a softer yen underpinned equity gains in Tokyo. By the close, Japan's Nikkei popped 2.1%, China's Shanghai Composite and Hong Kong's Hang Seng each climbed 1.3%, and South Korea's Kospi advanced 0.9%.
After local markets closed for the week, the People's Bank of China (PBOC) cut its benchmark one-year lending and deposit rates by 25 basis points apiece. This marks the PBOC's
sixth rate cut since last November, with the most recent reduction occurring less than two months ago.
Traders in Europe are cheering the latest easing move out of China, with major equity benchmarks higher across the board at midday. Closer to home, Markit's flash purchasing managers manufacturing index (PMI) for the eurozone arrived at a stronger-than-forecast 52.0 in October. At last check, the German DAX and French CAC 40 are both up 2.7%, while London's FTSE 100 has added 1.5%.
