Asian stocks rallied from six-month lows after the US Federal Reserve announced it would be considering delaying the end of its bond-buying policy. Data out of the US also reassured the markets about the future of the global economy.
The MSCI Asia Pacific index rose 0,1% to 134.93 at 9:01am in Tokyo after closing yesterday at its worst level since last March. However, the index is about to end the sixth consecutive week with a negative sign after the weak recovery in China and Europe has alarmed the international community.
“Markets in Europe, Australia and Japan offer good opportunities,” explains Steven Milch, chief economist of Suncorp Group. “I don't think the fundamental picture has changed significantly. The Fed must strike a balance between what is clearly a strong economy and financial market volatility."
Yesterday's data show that US industrial production is growing. Claims for unemployment benefits are at their lowest level in 14 years. The Japanese Topix was up 0,1% as the yen lost ground against the dollar. South Korea's Kospi Kospi gained 0,2 percent. The New Zealand NZX 50 was up 0,3% as was the Australian ASX200.
