Asian markets shake off U.S. tax worries to push higher – Reuters

Asian markets shake off U.S. tax worries to push higher – Reuters

Asian shares rose on Friday after the European Central Bank left policy unchanged, extending a rebound following a sharp selloff earlier in the week, but gains were capped as investors considered the impact of a possible U.S. capital gains tax hike.The ECB's decision to keep copious stimulus flowing came despite its prediction of a strong rebound in the euro zone economy from mid-year as COVID-19 infections are brought under control. "There were a couple of subtle acknowledgements today that an upgrade to forecasts is likely coming at the June 10 meeting ... Lagarde did highlight the pick-up in vaccinations and noted high frequency data are confirming to ECB staff that their previous view of an improvement in the medium-term (is) on course," said Ray Attrill, head of FX strategy at National Australia Bank.But in a hit to stock market sentiment overnight, the administration of U.S. President Joe Biden was reported to be seeking an increase in the capital gains tax to near 40% for wealthy individuals, almost double the current rate. The Dow Jones Industrial Average (.DJI) ended down 0.94%."The move on the Dow overnight I think needs to be seen in the context that it's had a remarkable run