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 With almost all the votes in, the camp for Scotland to remain in the
UK was ahead 55 percent to 45 percent, an outcome likely to bring
relief to a number of countries in Europe, particularly Spain, which
is facing similar secessionist pressures in Catalonia.
Sterling jumped to a two-week high against the dollar, a two-year
peak against the euro, London's FTSE share index hit a
two-week high and Spanish stocks and bonds as well as those in
Ireland jumped.
Global stocks were already heading towards their fifth weekly gain
in the last six. They have been boosted by further assurances this
week that interest rates are likely to remain at record lows in many
major economies.
Sentiment was also underpinned by news that Chinese internet giant
Alibaba <BABA.N> priced its IPO at $68 a share on Thursday, the top
end of the expected range that raises $21.8 billion in one of the
world's largest-ever stock offerings.
"I am happy today, risk is back on, everybody is happy today," said
Geir Lode," Head of Global Equities for fund manager Hermes in
London. "We have Scotland, Alibaba is huge, what could be better."
Scotland's vote against independence ended a fraught two weeks for
markets that had seen the value of sterling fall sharply after some
polls suggested the 307-year old union was on the brink of collapse.
The vote not only keeps Britain intact but also reduces the
likelihood of its leaving the European Union, potentially a much
greater risk for markets and something Scottish independence might
well have precipitated, analysts said.
The pound's bounce against the dollar was not a large as some had
predicted, hovering at $1.6469 <GBP=D4> as European trading settled.
But it was stronger against other currencies, rising to a two-year
high of 78.10 pence per euro and a six-year high of 180.70 yen
The cheer spread to the rest of Europe's bourses. The euro zone's
blue-chip Euro STOXX 50 index rose 0.7 percent, while Germany's DAX
and France's CAC both advanced by 0.6 percent.
Spain's IBEX outperformed with a 1.3 percent rise, helped by a fall
in Spanish 10-year government bond yields as markets viewed
Scotland's "No" vote as having reduced prospects of a stronger push
for a breakaway in Catalonia.
"For the markets in general, the Scottish result is probably the
best outcome because the 'Yes' vote winning was really not priced in
and that could have caused chaos, with contagion to Europe," said
Clairinvest fund manager Ion-Marc Valahu.
YEN FLOOR, NIKKEI ROAR
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan
added about 0.2 percent, supported by Wall Street's strong showing
overnight after Alibaba's IPO bonanza, though the region was still
on track for a weekly loss of about 1.4 percent.
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Japan's Nikkei stock average ended up 1.6 percent at a seven-year
closing high, giving it a 2.3 percent gain for the week. Shares got
a tailwind from a weaker currency as the dollar pushed to a new
six-year high of 109.46 yen and as Prime Minister Shinzo Abe said he
aims to carry out as soon as possible reform of the country's $1.2
trillion public fund.
The dollar index, which tracks the currency against a basket
of six peers, stood at 84.333, edging up on the day after it climbed
as high as 84.743 on Thursday, its strongest level in more than four
years.
The euro shed about 0.1 percent to $1.2906 after hitting a 14-month
low on Thursday, when it fell as low as $1.2834.
Risk sentiment seemed unruffled by geopolitical clouds on the
horizon. The U.S. Senate on Thursday approved a bill requested by
President Barack Obama to arm and train moderate Syrian rebels
fighting Islamic State militants, while tensions continued to rumble
between Ukraine and Russia.
Among commodities, Brent crude held below $98 a barrel, but was set
for its first weekly gain in three on the possibility of lower OPEC
output. Brent edged down to $97.63 a barrel, while U.S. crude
slipped slightly to $92.94.
Traditional safe-haven gold inched lower to $1,224.40 an ounce after
touching $1,216.01 in the previous session, its lowest since Jan. 2.
Copper was also limping toward a fourth straight week in the red,
hurt by concerns over slowing economic growth in top consumer China.
(Additional reporting by Anirban Nag in London, editing by John
Stonestreet)
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