Global Markets Set for Biggest Rally in Three Years

China’s stimulus aspirations, clearly articulated by PBOC head Zhou Xiaochuan this past Sunday, have unexpectedly taken a prolonged effect on market sentiments, with Asian stocks edging closer to their best quarterly performance in almost three years.

Kristian Rouz – Equity markets in Asia-Pacific gained ground at an accelerated pace with mainland China booming on the  anticipation of easing, while a stronger US dollar pushed the regions export-oriented markets up.

MSCI broader evaluation on the across-the-board APEX shares (save for Japan) advanced 0.6%, with the index’ quarterly gains nearing 4%. The volatile Shanghai Composite Index capitalized on yesterday’s gains with investors still under the impression of yesterday’s statements made by PBOC head. The index hit its seven-years highs.

In Japan, the broader Topix index advanced 1.2% as the yen shed 0.8% against the dollar the other day. In Australia, the S&P/ASX 200 rose 1.2%, while New Zealand’s NZX 50 advanced 0.2%.

Stocks in South Korea, Hong Kong, Indonesia and Malaysia posted gains as well due to a stronger dollar, at 120.20 yen now as compared to 119.105 yen overnight. Japan’s Nikkei 225 Index, however, slid 0.2% due to softer manufacturing data.

Most of Tuesday’s gains in Asia were motivated by Monday’s rally on Wall Street, where the Dow and S&P 500 both added over 1%.

Greece in running out of money, projected to hit the rock bottom on 20 April anda new round of talks with international creditorsis the factor weighing on the common currency valuation.

On Monday, the Stoxx Europe 600 Index rose 1.1%.

Crude oil extended its fall as Iran nuclear talks intensified ahead of the deadline. Tehran wants the international sanctions lifted andto be allowed to export some 2.5 mln bpd of oil as compared to the present quota of 1 mln bpd. US WTI crude was down 1.3% to $48.06/bbl, Brent crude retreated to $55.54/bbl.