(Bloombedrg) European stocks climbed, halting a two-day decline, after the Bank of Japan joined the Federal Reserve in opting for further asset purchases to support the economy. U.S. index futures and Asian shares also rallied.
Inditex SA (ITX) added 3.9 percent after the world’s largest clothing retailer reported better-than-estimated profit. Lonmin Plc (LMI) rose 8.4 percent after the company reached a pay agreement with workers at its Marikana mine in South Africa. Heineken NV (HEIA) advanced 5.2 percent after stakeholders said they will back the company’s $4.6 billion bid for Asia Pacific Breweries Ltd.
The Stoxx Europe 600 Index (SXXP) gained 0.5 percent to 275.14 in London after falling 0.8 percent over the previous two days. Standard & Poor’s 500 Index futures expiring in December added 0.4 percent, while the MSCI Asia Pacific Index climbed 0.6 percent.
“The BOJ joins in the quantitative-easing party,” said Jonathan Sudaria, a trader at Capital Spreads in London. They have “fired up the printing presses in an effort to keep Japan’s export economy from not plunging further.”
The central bank unexpectedly expanded its asset-purchase target by 10 trillion yen ($126 billion) as it seeks to avoid a contraction in the world’s third-largest economy.
The BOJ’s board enlarged the central bank’s program, in which it buys mainly government debt, to 55 trillion yen in a unanimous decision, according to a statement. The board held a separate fund that extends credit to banks at 25 trillion yen.
Bloomberg reports the benchmark Stoxx 600 climbed to a 15-month high last week after European Central Bank policy makers agreed to implement an unlimited bond-buying program and the Fed unveiled a third round of asset purchases. The gauge has climbed 18 percent from this year’s low on June 4.
Inditex rallied 3.9 percent to 95.50 euros after the owner of the Zara and Massimo Dutti chain reported a 32 percent jump in first-half net income to 944 million euros ($1.23 billion). The average estimate of 13 analysts compiled by Bloomberg had called for profit of 893.5 million euros. Sales for the period gained 17 percent.
Lonmin surged 8.4 percent to 704.5 pence after miners agreed to return to work at Marikana, six weeks after the beginning of a strike that left 45 people dead.
The mine accounts for about 96 percent of the company’s total output and almost 10 percent of global platinum production. The agreement includes an average increase in wages of 11 percent and 22 percent as well as a one-off payment of 2,000 rand ($245) before taxes.