Dovish comments from Bank of England (BoE) Governor Mark Carney are propelling stocks in Asia and Europe
Asian stocks closed the week on a strong note, as
allusions to future interest-rate hikes on Thursday from Bank of England (BoE) Governor Mark Carney energized markets. Investors in Japan also digested the quarterly Tankan survey, which indicated better-than-expected business sentiment out of the manufacturing sector, though the outlook on banks was relatively grim. Still, with the yen cooling and yields on government bonds touching historic lows, the Nikkei ended with a 0.7% gain.
Economic data was also in focus in China, where the purchasing managers index (PMI) for June edged lower from its May reading, though it stayed above the all-important 50 mark -- which indicates expansion. As such, the Shanghai Composite managed a 0.1% advance. In South Korea, the Kospi picked up 0.9%, while markets in Hong Kong were closed for holiday.
Stocks in Europe are also on the rise. On top of Mr. Carney's comments on potential monetary easing, traders also considered reports the European Central Bank (ECB) may loosen restraints on bond purchases, after the rapid decline in yields following the
"Brexit" vote. For economic data, the eurozone jobless rate fell in May to its lowest level since July 2011, while the June PMI reading was better than expected. At last check, London's FTSE 100 and France's CAC 40 have added 0.9%, with Germany's DAX up 0.8%.
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