Asian Equities Higher After Most European Banks Pass Stress Tests

Markets in Asia were mostly up and European exchanges were expected to open higher on Monday, as investors appeared to shrug off news that most European banks received a clean bill of health from the European Central Bank.

The E.C.B. said on Sunday that 25 European banks had failed crucial stress tests to determine whether they could withstand a financial crisis, leaving a shortfall of 25 billion euros, or about $31 billion, in cash. The tests were widely watched as a measure of whether European banks, ravaged by the financial crisis, were finally turning the corner.

But no major European bank failed the yearlong audit, which was based on bank figures from the end of 2013. Since the start of the year, some of banks have raised fresh money to fill existing holes, but 13 of the 25 banks that failed have not yet raised enough money. These are mainly Italian and Greek banks.

NY Times

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