Asian equity markets rose on Friday following more liquidity boosting measures from China’s central bank and record U.S. gains overnight.
Late on Thursday, the People’s Bank of China cut the 14-day repo rate by 20 basis points to 3.5 percent in attempt to ease short-term borrowing costs for banks. Traders also said the PBOC injected $1.3 billion into money markets this week. The move comes days after the PBOC was believed to have pumped $81 billion into China’s top five banks.
Record peaks on the S&P 500 and the Dow Jones overnight also boosted sentiment after the number of Americans filing for jobless benefits dropped to a two-month low and as investors continued to relish the Federal Reserve’s vow to keep benchmark rates low.