By Andrew Galbraith
SHANGHAI (Reuters) -A key gauge of Asian shares rose on Friday, supported by gains in China and a decision by the European Central Bank to maintain stimulus, while investors largely shrugged off the impact of a possible U.S. capital gains tax hike.
Modestly firmer equity markets contrasted with ructions in cryptocurrencies as investors fretted over the impact of tax changes. Bitcoin’s rout deepened, dropping below the $50,000 level to a low of $48,338.37, its lowest level in nearly seven week. Ethereum plunged nearly 12% before trimming losses, and was last down about 7% at $2,240.65.
The ECB’s decision to leave policy on hold 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,” said Ray Attrill, head of FX strategy at National Australia Bank. “Lagarde did highlight the pick-up in vaccinations and noted high frequency data are confirming to ECB staff that…
