Asian shares were mixed on Monday following results from the European Central Bank’s stress tests and gains on Wall Street last week. Results of a key health check of the euro zone’s financial system unveiled over the weekend showed that 25 of 130 banks failed the stress tests, which analysts said was better-than-expected. 12 out of those 25 lenders have already raised 15 billion euros this year to repair their finances.
Meanwhile, U.S. stocks climbed on Friday, with Wall Street derailing a four-week slide with its best week this year, following strong quarterly earnings from Microsoft.
The overall market mood is expected to be cautious ahead of a two-day Federal Reserve meeting beginning Tuesday. Speculation is high whether the central bank will announce an end to its bond-buying program and remove the phrase ‘considerable period,’ a timeline reference for a rate hike, in its statement.
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