Asia has been encountering stock market escalation for some time now, but it was only earlier this week that their European counterparts started to follow suit. There was an increase of 2.6 percent in Samsung Electronics Co. stocks – the largest exporter of consumer electronics in South Korea. As well, gains were tracked in Asia from Europe’s stock market. A statement from the Group of 20 major economies led to the yen plummeting, boosting stock markets. In addition, there were some of the largest shares reported in Italy, following the re-election of Giorgio Napolitano as President which was said to have relaxed political tensions.
The escalation in European stocks also resulted in the highest level of the benchmark index since June 2008. This could have been the catalyst to Bloomberg’s prediction of a cut in interest rates orchestrated by the European Central Bank. According to Khiem Do, Hong Kong-based head of Asian multi-asset strategy at Baring Asset Management Ltd., however, it should be noted that “in the short- term, some markets like Japan and the U.S. have been overbought and could consolidate from day to day.”