Asian markets, euro gain on hopes for ECB action

HONG KONG: Asian markets and the euro rose on Thursday ahead of a European Central Bank meeting that many expect will see the restart of a sovereign bond-buying programme aimed at easing the eurozone debt crisis.

Tokyo edged up 0.06 percent, Hong Kong added 0.16 percent, Shanghai was 0.51 percent higher, Sydney gained 1.09 percent and Seoul advanced 0.50 percent.

The gains were also helped by bargain-hunting after two days of losses caused by another batch of weak manufacturing data that fuelled concerns over the global economy.

Investors have become increasingly confident that the ECB will announce plans to buy up the debt of under-pressure countries that have seen their borrowing costs soar to dangerous levels.

Bank chief Mario Draghi raised hopes in July by saying it would do whatever was needed to save the euro, and expectations were raised further this week when European lawmakers said he had hinted at buying short-term debt on the secondary market.

Such a move in the past was justified to help stabilise and protect the 17-nation eurozone, he said, according to the politicians.

And on Wednesday media reports said the ECB planned to re-enter sovereign debt markets with unlimited bond purchases.

The expectations sent the euro higher in New York late Wednesday after easing slightly earlier in the day in Asia.

And on Thursday in Tokyo the single currency rose further, fetching $1.2617 and 98.90 yen against $1.2600 and 98.78 yen in New York.

The dollar was at 78.43 yen, compared with 78.38 yen.