Sunday, July 29, 2012

Asian stock markets july 30 2012

Asian stock markets july 30 2012 : Asian shares extended their gains on Monday, supported by expectations the Federal Reserve and the European Central Bank will deliver new measures to underpin their fragile economies, but the euro fell as caution kept a firm cap.

MSCI's broadest index of
Asia-Pacific shares outside Japan gained as much as 1.1% to a three-week high, after posting its biggest daily rise in a month on Friday with a 2.2%climb.

Korean shares touched their highest in four weeks while Australian shares rose to their highest in more than two months. Japan's Nikkei stock average was up 0.6% after hitting a one-week high.

The turnaround in market sentiment from recent heavy selling was triggered last week when ECB President Mario Draghi pledged he would do whatever it takes to safeguard the single currency.

His comments raised hopes the ECB, which holds its policy meeting on Thursday, will act to ease borrowing strains for Spain and other highly indebted countries facing surging yields that threaten to derail fiscal restructuring efforts.

Investors grew slightly more cautious about their risk appetite, however, pushing the Australian dollar off the day's high at $1.0498 in early Asian trade. The dollar index measured against a basket of major currencies, inched up 0.1% and crawling away from Friday's three-week low.

The euro fell 0.4% to $1.2285, well below a three-week high of $1.2390 touched on Friday. It slid to a two-year low around $1.2042 last week before Draghi's comments.

Uncertainty persisted in Europe about specific action, despite authorities speaking of the urgency to tackle Spain's fiscal woes, which drove its 10-year government debt yield to euro-era highs of 7.78% last week. Greece continued with its battle to convince creditors of its debt-cutting plans.

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