Asian stock markets rose in trading this morning, Thursday, June 7, 2012, because of the expectation of monetary stimulus from the positive signals of central bankers in Europe and the United States in addressing the global economic crisis.
President of the European Central Bank (ECB), Mario Draghi, as reported by the Wall Street Journal, said that the market is underestimating the commitment of political leaders to overcome the crisis of the euro zone.
Despite the central bank fails to satisfy those expecting a decrease in interest rates, the Draghi's comments, some investors interpreted a sign that the ECB is ready to act when the time comes.
In fact, the ECB president also revealed that "a bank" is committed to supporting the interest rate cuts.
Market expectations for policy response of the global economic slowdown in the U.S. are also presented, in which the Federal Reserve Bank of Atlanta President Dennis Lockhart said that further monetary measures to support the recovery needs to be considered.
Especially, if the domestic growth rate is no longer possible and the Fed's interest rate setting must be prepared to respond to economic instability.
Noted, the Japanese stock market Nikkei 225 rose 1.1 percent and Australia's stock index S & P / ASX 200 rose 1.2 percent. While Korea's Kospi index jumped 2.4 percent.
Stock markets in the United States and Europe also rallied the world responded to the central bank's decision. The Dow Jones Industrial Average rose 2.4 percent, the strongest percentage increase in the daily index for the year.
Meanwhile, the FTSE 100 index of European markets, in trade for the first time after the Diamond Jubilee celebration of the British Empire was also up 2.4 percent. (ren)
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