Nikkei staged a strong performance too (up 1.7%) with strong machine orders supporting sentiment. Volumes were weaker ahead of the BoJ, but the overnight rally was led by insurers, banks and real estate – a sign that markets are not expecting further rate cuts at the upcoming meeting.
US stocks were up 1.6% on Friday, after a reassessment of the ECB’s stimulus measures. Financials led, E&P did well, while defensives underperformed.
Heidi Richardson is head of investment strategy for U.S. iShares.
Tushar Yadava is investment strategist at iShares.