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Asian shares rise, await ECB’s stimulus programme decision

SINGAPORE — Asian shares rose yesterday, riding on a rally that has seen the Dow Jones industrial average post its 11th record high close since Donald Trump won the presidential election in the United States. Investors are also riding on hopes that the European Central Bank will extend its stimulus programme at today’s meeting.

SINGAPORE — Asian shares rose yesterday, riding on a rally that has seen the Dow Jones industrial average post its 11th record high close since Donald Trump won the presidential election in the United States. Investors are also riding on hopes that the European Central Bank will extend its stimulus programme at today’s meeting.

President Mario Draghi heads the Governing Council’s final policy meeting of 2016, when it will review the bond-buying programme that policy makers say is critical for the euro area’s recovery. The risk now is of a failure to meet market expectations that sparks a selloff.

Most economists in a Bloomberg survey predict the two-day session will culminate in a decision to prolong asset purchases after March at the current monthly pace of €80 billion (S$121.6 billion) for about six months.

In Singapore, The Straits Times Index ended up 0.4 per cent at 2,959.84, taking the year-to-date performance to +2.59 per cent. The top active stocks were DBS, which gained 0.88 per cent and OCBC Bank, which gained 0.32 per cent. Genting Singapore gained 4.59 per cent and Singtel advanced 1.07 per cent.

Hong Kong’s benchmark Hang Seng Index rose to a one-week high, advancing 0.6 per cent. The Shanghai Composite Index gained 0.7 per cent.

Japan’s Nikkei gained 0.7 per cent and Australia’s S&P/ASX 200 index also closed 0.9 per cent higher, even after news that the Australian economy contracted last quarter.

The Australian dollar, however, fell as much as 0.6 per cent against the greenback after GDP data showed the economy shrank for the first time in over five years, an unexpected blow that will challenge policymakers’ optimism for growth.

Against the Singapore dollar, the Aussie dollar fell as much as 0.5 per cent before regaining some to trade at S$1.0573. AGENCIES

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