Asian markets rise on US, Europe stimulus hopes

HONG KONG: Asian markets rose for a third successive day on Thursday, posting strong gains on hopes for stimulus measures in the United States and Europe as well as promises of help for Spain's banks.

The euro also held up against the yen and dollar after impressive gains in New York late Wednesday, with dealers feeling a little more confident European leaders can navigate the long-running crisis.

Tokyo was 1.26 percent higher by the break, Hong Kong rose 1.72 percent, Sydney was up 1.49 percent and Seoul soared 2.77 percent while Shanghai added 0.40 percent.

Regional investors followed the lead of their counterparts in Europe and the United States.

While a decision by the European Central Bank to keep rates on hold was disappointing, its head Mario Draghi said some governors on the policy committee had wanted a cut.

He added that Wednesday's decision was "taken by very broad consensus" - which analysts took to mean that there will be a reduction next month owing to the admission of dissent.

The bank also said it would keep cash flowing to the 17-nation eurozone's embattled banks, at least through year-end.

On Spain, French Finance Minister Pierre Moscovici on Wednesday said the eurozone was ready to "mobilise very rapidly" to assist if Madrid requested it, slightly easing fears in the region's fourth largest economy.

Spain has become a huge concern for the eurozone, with Germany against providing aid to Spain to help its banks without a bailout, and other states flexible on how to help Madrid without resorting to a full rescue.

The likelihood of another round of stimulus in the United States rose again as the Fed looks to head off the effects of the European slump on the world's number one economy.

Dennis Lockhart, President of the Atlanta Federal Reserve, said the central bank might need to consider more easing if economic growth there hits more road blocks, days after another poor batch of jobs growth data.

He said if domestic growth is no longer possible "further monetary actions to support the recovery will certainly need to be considered", while the Fed rate-setting committee needs to be ready to respond to economic instability.