Asian stocks rise on stimulus hopes
- Risk assets remain bid on stimulus hopes.
- The ECB is expected to cut rates in September.
Asian stocks are better bid at press time, possibly on prospects of central bank rate cuts.
As of writing, Japan's Nikkei is up 0.26% or 57 points at 21,766. Stocks in Australia and New Zealand are also reporting moderate gains.
Hong Kong's Hang Seng and the Shanghai Composite index are adding 0.20% and 0.22%, respectively. Futures on the S&P 500, however, are flatlined. The index closed at record highs on Wednesday.
The European Central Bank (ECB) is expected to leave rates unchanged today, but prepare the ground for rate cuts in the coming months.
For instance, UBS expects the central bank to cut rates by 10 basis points in September and a further 10 basis point cut in December or earlier.
Some observers also see the ECB restarting its quantitative easing program in the near-term.
Meanwhile, the US Federal Reserve is also seen delivering an "insurance rate cut" of 25 basis points on July 31.
Moreover, stimulus hopes seem to be overshadowing geopolitical risks. North Korea fired two projectiles from the eastern part of the Korean Peninsula, according to a statement from the South Korean Joint Chiefs of Staff.
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
