Asia markets extend rally on central bank hopes

Analysts warned there was still a plenty of headwinds as Britain and European Union leaders must agree a breakaway deal,while the global economy remained fragile

Asian stocks pushed higher again yesterday,  building on last week's rally as central banks around the world promised support to financial markets after Britain's vote to leave the EU fuelled fears of another rout, reports AFP.
The optimism that characterised last week continued as investors tracked another surge in New York and Europe, helped by upbeat US and eurozone data.
However, analysts warned there was still a plenty of headwinds as Britain and European Union leaders must agree a breakaway deal, while the global economy remained fragile.
Tokyo rose 0.6 per cent -- marking a sixth-straight gain -- Hong Kong climbed 1.3 per cent in the afternoon and Shanghai added 1.9 per cent by the close. Seoul added 0.4 percent.
Sydney rose 0.7 percent, despite the weekend's general election producing no clear winner raising the prospect of a hung parliament.
With votes still being counted, Prime Minister Malcolm Turnbull said the final result might not be known for several days, while Standard & Poor's warned the uncertainty could lead to the country's top-class AAA rating being cut.
South Korea's promise of $17 billion in stimulus last week came as dealers speculate that Japan will bolster its own multi-billion-dollar programme, while the chances of the US raising interest rates this year have all but evaporated.
On Thursday, Bank of England boss Mark Carney became the latest to provide assurances, indicating policymakers could embark on fresh monetary easing -- and possibly cut rates.
Richard Jerram, chief economist at Bank of Singapore, said: "Overall the impact of Brexit on the global economy seems likely to be limited, with the pain concentrated on the UK and, to a lesser extent, the rest of the EU."
But Nicholas Teo, a trading strategist at KGI Fraser Securities in Singapore, told Bloomberg News: "While the potential for increased liquidity from central banks has helped calm stock markets, there's still a lot of uncertainty out there.
"The strengthening US dollar isn't good for emerging markets. With China still on a slowdown, US recovery tentative and the messy UK-EU divorce, volatility will remain heightened."
The pound edged up against the dollar after taking a hammering from the referendum outcome. In late Asian trade it bought $1.3281 against $1.3267 Friday in New York and is well up from the 31-year low of $1.3121 it touched at the start of last week.
Investors are awaiting the release Wednesday of minutes from the Federal Reserve's most recent policy meeting to see if it sheds any light on its plans for interest rates, while US June jobs data is due on Friday.
In early European trade London rose 0.4 per centFrankfurt added 0.2 per cent and Paris climbed 0.3 per cent.

Asia markets extend rally on central bank hopes

Analysts warned there was still a plenty of headwinds as Britain and European Union leaders must agree a breakaway deal,while the global economy remained fragile

Asian stocks pushed higher again yesterday, building on last weeks rally as central banks around the world promised support to financial markets after Britains vote to leave the EU fuelled fears of another rout, reports AFP. The optimism that characterised last week continued as investors tracked another surge in New York and Europe, helped by upbeat US and eurozone data. However, analysts warned there was still a plenty of headwinds as Britain and European Union leaders must agree a breakaway deal, while the global economy remained fragile. Tokyo rose 0.6 per cent -- marking a sixth-straight gain -- Hong Kong climbed 1.3 per cent in the afternoon and Shanghai added 1.9 per cent by the close. Seoul added 0.4 percent. Sydney rose 0.7 percent, despite the weekends general election producing no clear winner raising the prospect of a hung parliament. With votes still being counted, Prime Minister Malcolm Turnbull said the final result might not be known for several days, while Standard Poors warned the uncertainty could lead to the countrys top-class AAA rating being cut. South Koreas promise of $17 billion in stimulus last week came as dealers speculate that Japan will bolster its own multi-billion-dollar programme, while the chances of the US raising interest rates this year have all but evaporated. On Thursday, Bank of England boss Mark Carney became the latest to provide assurances, indicating policymakers could embark on fresh monetary easing -- and possibly cut rates. Richard Jerram, chief economist at Bank of Singapore, said: Overall the impact of Brexit on the global economy seems likely to be limited, with the pain concentrated on the UK and, to a lesser extent, the rest of the EU. But Nicholas Teo, a trading strategist at KGI Fraser Securities in Singapore, told Bloomberg News: While the potential for increased liquidity from central banks has helped calm stock markets, theres still a lot of uncertainty out there. The strengthening US dollar isnt good for emerging markets. With China still on a slowdown, US recovery tentative and the messy UK-EU divorce, volatility will remain heightened. The pound edged up against the dollar after taking a hammering from the referendum outcome. In late Asian trade it bought $1.3281 against $1.3267 Friday in New York and is well up from the 31-year low of $1.3121 it touched at the start of last week. Investors are awaiting the release Wednesday of minutes from the Federal Reserves most recent policy meeting to see if it sheds any light on its plans for interest rates, while US June jobs data is due on Friday. In early European trade London rose 0.4 per centFrankfurt added 0.2 per cent and Paris climbed 0.3 per cent.