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Asian stocks rose on Friday after a hint of more monetary easing by the European Central Bank and a bounce in crude oil from 12-year lows helped soothe skittish markets.
Japan’s Nikkei jumped 3.5 percent to move away from a 15-month low struck Thursday. Speculation for more easing also favoured Tokyo shares amid hopes that the Bank of Japan would opt for additional stimulus at its 28-29 January policy meeting.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 2 percent. The index probed a four-year low on Thursday. It was still on track to lose 1.5 percent on the week which saw a slide in oil prices and China-led global growth concerns continue to pummel risk assets globally.
The ECB managed to contain some of the pessimism for the time being after ECB President Mario Draghi hinted strongly on Thursday that more easing could be coming within months. Fading growth and inflation prospects will force the central bank to review its policy stance in March, Draghi said.
The Chinese yuan remained relatively steady against the dollar as efforts by local authorities to quell speculation of a sharp depreciation appeared to work for now.
Onshore spot yuan stood little changed at 6.5797 to the dollar, corralled in a narrow 6.5837-6.5768 band so far this week.
After guiding the yuan sharply lower and pushing onshore spot rates to a five-year low earlier this month, the People’s Bank of China (PBOC) has helped the currency plateau by setting a succession of midpoints within a tight range. Authorities have also introduced steps to discourage speculators from shorting the yuan.
US crude oil extended a rally made overnight after data showed stockpiles at some US sites did not grow as much as forecast, providing participants in the battered market with an incentive to cover short positions.
The contracts were up 0.8 percent at $29.75 a barrel. US crude fell to its lowest levels since 2003 earlier this week as the prospect of Iranian oil - following the lifting of international sanctions on Tehran - flooding a heavily saturated market dragged down prices.
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