Asian stocks, European shares inch higher on Fed’s boss monetary policy remark

Gulf Today Report 

Asian stocks gain on Thursday after the Fed’s boss said the US central bank would still be supporting the economy. 

Shanghai, Tokyo, Hong Kong and Seoul all advanced.

The Shanghai Composite Index rose 0.9% to 3,597.01 and the Nikkei 225 in Tokyo gained 1.5% to 30,125.89. 

The Hang Seng in Hong Kong advanced 2% to 30,301.64 after the territory's government promised more coronavirus aid and forecast economic growth of at least 3.5% this year.

The Kospi in Seoul added 3.3% to 3,056.22 after the Bank of Korea left interest rates unchanged and forecast 3% annual economic growth. India's Sensex opened up 0.9% at 51,249.19. 

Stocks globally have recorded unexpected gains in the last six months on hopes for a vaccine-led economic recovery. 

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European shares 

European shares jumped on Thursday on US Federal Reserve assurance to retain a loose monetary policy.

The pan-European STOXX 600 index was up 0.4% by 08:47 GMT, with mining and energy stocks also tracking gains in commodity prices.

European banking index rose by 1.4% gaining from higher bond yields. 

Easy money provided by major central banks in 2020 has supported benchmark STOXX 600 jump above 50% since the pandemic crash. 

"Today's price action emphasises just how much capital remains on the sidelines," said Jeffrey Halley, senior market analyst at OANDA.

Earnings at STOXX 600 firms are forecasted to bounce back to about 38% in the first quarter of 2021, according to Refinitiv data.