Asia stocks extend rally as oil pushes higher | mb.com.ph | Philippine News
Home  » Business

Asia stocks extend rally as oil pushes higher

Hong Kong – Asian stocks rallied again Monday and oil maintained last week’s advance as investors bet on central bank stimulus measures to support markets after a bloodbath at the start of the year.

Having set the tone for global trading floors Friday with sharp gains, regional dealers took up the mantle again, with Hong Kong, Tokyo and Sydney leading the charge.

Energy firms were among the biggest winners after oil prices surged 10 percent on Friday, halving the losses suffered so far in 2016 that have been a key cause of the global market rout.

However, while analysts said the snapback – after three weeks of heavy selling – was due, they warned that the volatility which has infected markets from Asia to the Americas would likely continue.

The rally comes at the start of a full week of market-moving news, including policy meetings by the US and Japanese central banks.

There will be close scrutiny of the Bank of Japan after a report last week said policymakers were considering ramping up its already vast stimulus program to avert a deflation threat that has been exacerbated by plunging oil prices.

That came a day after the head of the European Central Bank, Mario Draghi, said he would consider further easing its own monetary policy.

There is also increasing speculation the Federal Reserve will delay another interest rate rise for now, having increased the cost of borrowing in December for the first time in a decade.