Economy, Stress Test | featured news

European risk assets remain under pressure as investors digest the latest round of bank stress tests by the European Banking Authority.

Eight of 90 banks have flunked stress tests that project how they would fare in another recession, and 16 more barely passed, Europe’s banking regulator said Friday. The failing banks should “promptly” take steps to strengthen their financial cushions against losses, the European Banking Authority said as it released the results. The banks that barely passed may also face pressure to strengthen their finances along with the ones that failed.

Broad probe testing 91 European banks finds most are fit to withstand severe economic shocks.

The Japanese stock market shot up after a three-day public holiday, catching up on this week’s global markets rally as investors took an upbeat view of the world’s economic prospects.