Asian stocks set for higher open on central bank support

Asian shares looked set to rise on Friday following pledges by central bankers globally to do whatever it takes to support the economic recovery while oil perked up as OPEC threatened to clamp down on member states that did not cut output. Australian S&P/ASX 200 futures rose 0.29% in early trading. Japan`s Nikkei 225 futures added 0.09%, while Hong Kong`s Hang Seng index futures rose 0.37%. E-mini futures for the S&P 500 rose 0.04%.

The Bank of England said on Thursday it was considering negative interest rates as the UK economy faces rising COVID-19 cases, higher unemployment and a possible new Brexit shock. It also kept its main stimulus programs on hold, citing a faster-than-expected economic recovery from pandemic lows.

“Delivering net economic stimulus this way absolutely can be done,” said Sharon Zollner, chief economist at ANZ, said of negative interest rates, which New Zealand`s central bank is also considering.

Avadoot Shah

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