Markets continued the drift back to growth assets in overnight trading. Official economic support in the US and China announced this week is helping lift sentiment. Industrial metals rose despite a lift in the US dollar, and European investors enjoyed a bounce back rally. Bond yields continued to climb. Asia Pacific stocks are looking at a mixed start on concerns about potential policy changes from the Bank of Japan next week.

The US reporting season rolls on. Amazon share rose 3.6% in after-hours trading on a stronger than expected quarterly report, providing a sentiment offset to Facebook’s 20%+ share price plunge. With around half of the reports in sales are growing at around 9% and earnings are up better than 25%. This evidence of a stronger operating environment saw the Dow post a gain, although the pressure on Facebook meant the Nasdaq index fell 1%.

Lower regional currencies could support regional shares today. Futures markets indicate opening strength. However the potential for the Bank of Japan to begin the move away from its Yield Curve Control policy next week and the beginning of the reporting season in Australia may see a continuation of lower volumes and cautious moves.

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