Asian markets ride wave of relief towards 2016 peak

Jessica Morris
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Beijing Regains Blue Sky Following Heavy Smog For Days
Investors felt concerned about the Brexit vote (Source: Getty)

Soothed investor nerves helped Asian shares climb towards a 2016 high today.

It came as strong US growth prospects, as well as the appointment of a new prime minister in Britain, dampened worries about the Brexit vote.

MSCI's broadest index of Asia-Pacific shares outside Japan swelled as much as 0.4 per cent to 427.83 points, just below its year-to-date high of 428.22 hit on 21 April.

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Meanwhile, MSCI’s broadest gauge of the world’s stock markets recovered all the losses after Britain’s referendum, to hit its highest level in over a month.

"A while ago, everything looked so uncertain on Brexit. But now the UK looks set to have a new prime minister and negotiations may begin earlier. That is soothing investor sentiment," Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management, told Reuters.

Friday's robust jobs report helped the S&P close at a new record of 2,152.14 points yesterday, while the Nasdaq turned positive for the year.

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In Japan, Prime Minister Shinzo Abe ordered a new round of fiscal stimulus spending after an election victory.

The Bank of England is also expected to announce more monetary stimulus tomorrow, with some market mavens expecting a rate cut.

Many believe the European Central Bank is preparing to take a dovish stance at its policy review a week later.

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