FXstreet.com (Barcelona) - Asian stock markets are going through positive figures ion Thursday supported by hopes that the stimulus plan by the Chinese government will help to reactivate global economy. Euro and pound have declined slightly after Wednesday's rally on expectations of rate cuts by BoE and ECB.
Chinese stimulus plan is expected to help the country's economy to get a 8% growing rate in 2009 while maintaining employment; these forecast would definitely be of much help to kick start global economy, although complete economic recovery is not likely to happen until the U.S. banking sector is revived.
Tokyo Nikkei Index has risen 2.4% as exporters' stocks gained on hopes of Chinese economic recovery, The MSCI index for Asia-Pacific edged up 0.2% and South Korea's Kospi Index rose 0.5%.
Euro and Pound decline ahead of Monetary Policy Decisions
European currencies have dropped back somewhat after yesterday's rally as their respective Central Banks are expected to cut interest rates later today.
EUR/USD has been rejected by the 1.2660 resistance level and has retraced about 80 pips during Thursday's Asian session, breaking support level at 1.2600 and advancing towards 1.2550.
The Pound has resisted better then the Euro, GBP/USD rally from 1.3985 low on Mar 4 has reached a top at 1.4190 to drop back later towards support line at 1.4135, which is proving strong enough, and the Pound remains neutral, above there ahead of the BoE interest rate decision.
USD/JPY has remained below 99.50 on Asian s4ssion after bouncing up from support level at 99.00. The USD is overbought although its rally is the strongest in years.