A person walks in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Monday, Nov. 7, 2022, in Tokyo. Asian stocks mostly rose Monday, as investors weighed uncertainties such as the U.S. mid-term elections and China's possible moves to ease coronavirus restrictions. (AP Photo/Eugene Hoshiko)
Asian markets extended a risk rally on Wall Street on Friday to end a tumultuous week that saw a brewing banking crisis send bond yields plunging while market participants sharply lowered expectations of future interest rate hikes in Western economies.
Overnight, the European Central Bank (ECB) delivered an inflation-fighting 50 basis point rate hike in line with oft-repeated guidance, with sentiment buttressed by the Swiss National Bank’s massive support for Credit Suisse Group AG (CSGN.S), which sent the troubled lender’s shares 20% higher.
Further helping sentiment, as many as 11 U.S. banks including JPMorgan Chase & Co (JPM.N) will deposit as much as $30 billion into First Republic Bank (FRC.N). Investors welcomed the move by sending the stricken lender’s stock 10% higher.
MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose 0.9% on Friday, erasing earlier losses this week. Japan’s Nikkei (.N225) climbed 0.5%.
China’s bluechips (.CSI300) increased 0.8% and Hong Kong’s Hang Seng Index (.HSI) surged 1.2%.
S&P 500 futures eased 0.1% and Nasdaq futures were flat after major U.S. stock indices rallied hard on easing fear of a global banking crisis.
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