GLOBAL MARKETS-Asian stocks set for higher open on central bank support

By John McCrank
NEW YORK, Sept 17 (Reuters) - Asian shares looked set to
rise on Friday following pledges by central bankers globally to
do whatever it takes to support the economic recovery while oil
perked up as OPEC threatened to clamp down on member states that
did not cut output.
Australian S&P/ASX 200 futures YAPcm1 rose 0.29% in early
trading. Japan's Nikkei 225 futures NKc1 added 0.09%, while
Hong Kong's Hang Seng index futures .HSI HSIc1 rose 0.37%.
E-mini futures for the S&P 500 EScv1 rose 0.04%.
The Bank of England said on Thursday it was considering
negative interest rates as the UK economy faces rising COVID-19
cases, higher unemployment and a possible new Brexit shock. It
also kept its main stimulus programs on hold, citing a
faster-than-expected economic recovery from pandemic lows.
"Delivering net economic stimulus this way absolutely can be
done," said Sharon Zollner, chief economist at ANZ, said of
negative interest rates, which New Zealand's central bank is
also considering.
"But will prolonged super-low rates stimulate the 'right'
behaviours from a long-run perspective? That's a problem for
another day."
Earlier, the Bank of Japan held its short-term interest rate
target at -0.1% and said inflation trends, along with job
growth, would guide its policy going forward, signaling the
central bank's readiness to ramp up stimulus if job losses
heighten the risk of deflation. BOJ governor Haruhiko Kuroda said the central bank would
work closely with new Prime Minister Yoshihide Suga's
administration to shield the economy, including by loosening
policy further.
And in the United States, the Federal Reserve on Wednesday
said it would keep rates near 0% through 2023.
U.S. stocks fell on Thursday as technology-related shares
slid for a second day and data suggested the labor market had
shifted into low gear amid fading fiscal stimulus.
The S&P 500 .SPX ended down 0.84%, and the Nasdaq
Composite .IXIC dropped 1.27%.
The Nasdaq's losses put the index down 10% from its closing
record, confirming a correction began on Sept. 2.
Adding to the negative sentiment, data showed the number of
Americans filing new claims for unemployment benefits fell less
than expected last week and applications for the prior period
were revised up. U.S. Treasury yields retraced some of their declines as
stocks pared losses, but the yield curve remained flatter as
investors stayed skeptical of the Fed's efforts to spur economic
growth, and U.S. lawmakers remained stalled on a stimulus
package.
Oil prices gained more than 2% on Thursday after OPEC and
its allies said they would crack down on countries that failed
to comply with output cuts. Most recently, U.S. crude CLc1 rose 0.07% to $41.00 per
barrel and Brent LCOc1 was flat on the day at $43.30.
The dollar index =USD fell 0.35%, with the euro EUR= up
0.05% to $1.1853.
The Japanese yen strengthened 0.01% versus the greenback at
104.72 per dollar, while Sterling GBP= was last trading at
$1.2977, up 0.04% on the day.