Asian stocks rose for a second day after U.S. indexes reached another record as China’s unexpected interest-rate cut stoked optimism in the global economy.
The MSCI Asia Pacific excluding Japan Index climbed 0.5 percent to 475.75 as of 9:02 a.m. in Seoul. China reduced interest rates last week, joining the European Central Bank and the Bank of Japan in deploying fresh stimulus. That contrasts with the Federal Reserve, which has ended its bond-buying program as the U.S. economy strengthens. ECB President Mario Draghi said Nov. 21 he will do what is necessary to spur inflation.
“Stimulus has been the magic fix for equity markets over the past six years and the mere sign it will eventuate is enough to be championed by the markets,” Evan Lucas, a market strategist at IG Ltd. Melbourne, wrote in a note to clients. “We now have three of the four largest central banks in the world actively stimulating their respective domestic economies.”