Asia shares on a roll as SNB kicks off rate cuts
By Rae Wee
SINGAPORE (Reuters) — Asian stocks were near a weekly gain on Friday and the Nikkei charged to a record high, riding a rally from its global counterparts after a surprise rate cut from the Swiss National Bank had investors wagering who could be next.
The SNB's 25 basis point rate cut on Thursday proved a shot in the arm for global risk sentiment as markets raced ahead to bet on big central banks lowering borrowing costs this year, sending Wall Street closing at record highs.
MSCI's broadest index of Asia-Pacific shares outside Japan ran into some profit taking in early trade on Friday after jumping nearly 2% in the previous session, and was last 0.17% lower. Still, the index was on track to gain more than 1% for the week.
Other benchmarks in Asia also scaled new peaks, with Japan's Nikkei and the Taiwan weighted index charging to record highs. Both were on track for a weekly gain of nearly 6% and 3%, respectively.
South Korea's KOSPI similarly hit a two-year top.
«It doesn't hurt if central banks are easing, that's for sure,» said Rob Carnell, ING's regional head of research for Asia-Pacific. «I'd expect this is going to provide further support if people start to eye more prospects of easing.»
Traders were quick to ramp up bets on a June cut by the European Central Bank (ECB) and the Bank of England (BoE) following the SNB's move.
BoE Governor Andrew Bailey said on Thursday after the central bank's rate decision that the British economy is moving toward the point where rates can begin easing, as two of his colleagues also dropped their calls for additional increases.
Sterling fell to a three-week low in the wake of the BoE's decision, and was last 0.11% higher at $1.26735. It was headed for a weekly loss of
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