Asian equities surged for a second day on Tuesday, as investors seem to favoured riskier assets and desert plunging Japanese yen.
MSCI Asia Pacific Index climbed 0.9 percent to 131.81 as of 9:11 a.m. in Tokyo, also heading for its highest in over a year.
Japanese Topix gauge rose 2.2 percent as Prime Minister Shinzo Abe decided to expand stimulus following the ruling coalition’s election victory.
Global equities continue to rise on speculation central banks will contain any fallout from the U.K. and the European Union, with the Bank of England due to announce rate cut this week and Japan’s Abe already announced additional stimulus, the rally is expected to continue, especially with the odds of the Federal Reserve raising interest rates in December gradually rising after stronger than expected job data showed healthy U.S. labour market.
“Surprisingly the probability of Fed rising rate this year is low, even with favourable job data,” said Michael McCarthy, a chief market strategist at CMC Markets Asia Pacific Pty in Sydney. “Accommodative monetary policies are favouring share equities in the mid-term.”
South Korea Kospi index surged 0.1 percent, while the yen fell by the most since October 2014. Australia’s S&P/ASX 200 Index gained 0.4 percent.