Japanese stocks led a rally in Asia on Monday, after solid U.S. MSCI's broadest index of Asia-Pacific shares outside Japan surged 1.3 percent, while Japan's Nikkei stock average jumped about 3.7 percent, posting its biggest daily rise since June last year and retaking some of the 5 percent it shed in the previous week.
The recent volatility in financial markets reinforces the need for the Federal Reserve to be patient with its policy stimulus and to clearly tie an eventual interest-rate rise to improving economic conditions, a top Fed policymaker told Reuters. Boston Fed President Eric Rosengren said that while it would take a few more weeks to understand the real economic fallout from the market selloff, he could "easily imagine" a scenario in which the U.S. "Patient monetary policy probably makes sense," Rosengren, a dovish Fed official, said in an interview over the weekend. Rosengren predicted the U.S.
When Europe announced its latest health check of top banks early last year it promised a "comprehensive assessment" of how well prepared they were to withstand another financial crisis. A series of Reuters interviews with officials, bankers and others involved in the European Central Bank's financial inspection of the euro zone's biggest banks shows that in the seven months since it began, the ECB has had to shoot down countless pleas from banks and national supervisors for special treatment. The ECB, which takes over as supervisor for the region's top banks on Nov. 4, declined to comment in detail on the issues raised but insisted the exercise was robust and thorough. It will announce on Oct. 26 which of Europe's 130 biggest banks have valued their assets properly and which have not, as well as whether banks need more capital to withstand another economic crash.