Asian stock markets advanced, setting the stage for a third consecutive week of gains, buoyed by the Bank of England’s actions which reinforced market confidence.
The British pound remained stable at $1.2515 after reaching a low of $1.2446 over two weeks ago, influenced by the Bank of England’s indications of potential rate cuts starting as early as next month.
The MSCI broad index of Asia-Pacific shares outside Japan increased by 0.7%, aiming for a weekly rise of nearly 1%—marking its third successive week of improvements. The Nikkei in Japan also saw a 0.4% rise.
However, stocks in China faced declines, with the blue-chip index falling by 0.3% amid geopolitical tensions triggered by a new trade restriction list from the Biden administration and the possibility of new tariffs on China.
Conversely, Hong Kong’s Hang Seng Index climbed 2%, reaching an eight-month peak in early trading.
In the U.S., the Dow Jones Industrial Average increased by 0.9% to close at 39,387.76 on Thursday, while the S&P 500 rose by 0.5% to 5,214.08 and the Nasdaq Composite grew by 0.3%, ending the day at 16,346.26.
In bond markets, yields on 10-year Treasury bonds slightly decreased to 4.45% from 4.50% the previous day.
