TOKYO: Expectations of policy easing by major central banks such as the Federal Reserve propped up global stocks on Tuesday, while the pound sagged as Britain braced for a new prime minister who could pave the way for a no-deal exit from the European Union.Japan's Nikkei rose 0.25per cent.The S&P 500 edged up toward a record high overnight, supported by expectations that the Federal Reserve would cut interest rates at its July 30-31 policy meeting.
"The likelihood of easing by the Fed is supportive for equity markets, but the probability of a 25 basis point rate cut has already been factored in for the most part," said Soichiro Monji, senior strategist at Sumitomo Mitsui DS Asset Management. Sterling was under pressure due to the likelihood of eurosceptic Boris Johnson becoming Britain's next prime minister.The result of Britain's weeks-long internal party election will be announced on Tuesday, with Johnson widely expected to have beaten foreign minister Jeremy Hunt. The winner will become prime minister on Wednesday.