Asian stocks set for best weekly gain in 9 years

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MSCI's broadest index of Asia-Pacific shares outside Japan is up more than 7% so far this week. FMTNews

SYDNEY: Asian stocks extended gains on Friday and were poised for their biggest weekly rise since 2011 while the euro hit a 1.5 month high as Europe’s central bank surprised with more stimulus, fuelling hopes for a global rebound.

Investors are pricing in a global economic recovery despite data showing the severe damage wrought by the coronavirus lockdowns. Later in the day, US non-farm payrolls figures are expected to show further deterioration in the country’s jobs market. South Korea’s KOSPI was among the best performers on Friday, up 1.5% while Japan’s Nikkei added 0.7%.Analysts cautioned about the heady levels, with equity valuations at their highest since the dot.com boom in 2000, according to Matthew Sherwood, investment strategist for Perpetual.

However, Michele warned the massive scale of quantitative easing would distort pricing and mute traditional signals from bond markets on growth and inflation, advocating “co-investing” alongside central banks.

 

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