European, Asian stocks jump as dollar firms

Gulf Today Report

European stocks gained on Friday following Germany’s DAX sharp gain more than the economic data expected.

The pan-European STOXX 600 index rose 0.7% gaining more than 3% as investors remain optimistic for US stimulus aiding sensitive sectors such as miners, oil & gas and banks. 

Germany's DAX index jumped 0.8% following data revelling unexpected gain in industrial output and exports. 

Asian stocks

Asian stock set for huge weekly gain on Friday as US yields increases, lifting the dollar.

Stocks across the region recorded 2% gains with the Philippines, Thailand and Indonesia reaching multi-month highs.  

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Singapore's benchmark, the worst performer last year among emerging markets, soared as the heavyweight financials tracked their US peers higher. 

Seoul's stocks rocketed 4%, getting an extra boost from Hyundai's 20% surge on possible electric vehicle deal with Apple. 

KOSPI's weekly gains recorded 9.7% gains, its highest since 2008. 

"The rebound in the dollar overnight, helped in part by rising US bond yields, has seen Asian currencies open weaker today," said Khoon Goh, head of Asia research at ANZ. 

Analysts are forecasting the recent dollar gain to remain temporary, coronavirus vaccine rollout is likely to support economic growth in the region.