Asian shares rally ahead of European Central Bank policy decision

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Markets shrug off Covid-19 woes amid upbeat news on vaccines

A man wearing a protective face mask talks on his cellphone in front of a screen showing the Nikkei index outside a brokerage in Tokyo, Japan. Picture: REUTERS/ATHIT PERAWONGMETHA

There was no obvious catalyst for the recent rebound in stocks, or the drawdown on Friday and Monday, though a study on Wednesday showed both Pfizer and AstraZeneca vaccines were effective against the Delta coronavirus variant. Still, unlike Wall Street, most Asian indexes struggled to recoup early-week losses as Asia contends with burgeoning outbreaks in unvaccinated populations and as nerves persist around China’s regulatory crackdown on technology firms.

The dollar index sat at 92.812, off a three-month peak of 93.194 and the euro was steady just above recent lows at $1.1791. With a mostly bare data calendar on Thursday, the ECB’s policy-setting decision, due at 11.45am GMT, and the subsequent media conference from president Christine Lagarde are the main focus for markets.

Rates markets idled in Asia, with trade thinned by Tokyo’s holiday, after a sell-off in treasuries overnight that left the yield on the benchmark 10-year US government debt at 1.2884%.

 

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