HONG KONG: Japanese stocks surged almost six percent Friday, leading an Asia rally, as dealers welcomed a report that the country’s central bank is planning to ramp up its stimulus programme and after Europe’s top banker hinted at similar moves.
After a rout that has wiped several trillion dollars off global markets so far this year, the prospect that two of the planet’s biggest central banks were ready to step in finally gave investors something to cheer about.
Oil tacked on more than four percent for a second straight day, pushing prices back above $30 for the first time since last week, while emerging market currencies benefited from a newfound confidence.
On Thursday, European Central Bank boss Mario Draghi highlighted concerns about the impact of plunging equity and oil prices on already weak inflation and pledged to reconsider its monetary policy at its March policy meeting.
“We have the power, willingness and determination to act,” he told a news conference. “There are no limits how far we are willing to deploy our policy instruments.”
