Asian stocks were mixed today (October 27th) after most of Europe's largest banks passed a stress test aimed at checking the strength of the region's financial system. The European Central Bank (ECB) has published the results of a thorough year-long examination of the resilience and positions of the 130 largest banks in the euro area as of December 31st 2013.
Some 24 banks failed, but ten have already taken steps to strengthen their balance sheets, the BBC reports.
"This unique and rigorous exercise is a major milestone in the preparation for the Single Supervisory Mechanism, which will become fully operational in November," said Vítor Constâncio, vice-president of the ECB.
"This unprecedented in-depth review of the largest banks’ positions will boost public confidence in the banking sector. By identifying problems and risks, it will help repair balance sheets and make the banks more resilient and robust. This should facilitate more lending in Europe, which will help economic growth," he added.
The Nikkei closed 0.6 per cent higher, while the Topix was up one per cent. South Korea's Kospi rose 0.3 per cent and Sydney gained 0.9 per cent.
However, Chinese shares were down after the launch of the Shanghai-Hong Kong Stock Connect – which links the stock markets in Shanghai and Hong Kong – was delayed.
Hong Kong's Hang Seng lost 0.8 per cent while the Shanghai Composite ended 0.5 per cent lower.
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