Asian stocks gain after UK rate cut ahead of US jobs report

BEIJING (AP) — Asian stocks rose Friday following a British interest rate cut as investors looked ahead to U.S. data that are expected to show faster job growth in July.

The Bank of England cut interest rates to new lows, its first reduction since the 2008 financial crisis, to offset the shock of Britain's June vote to leave the European Union.

The British central bank also unveiled a raft of stimulus measures that include resuming a bond-buying program to pump money into the economy and offering cheap loans to banks.

More rate cuts and other easing measures look "very likely" in light of Bank of England governor Mark Carney's "very negative" outlook in the event of Britain leaving the EU, which foresees a rise in unemployment from 4.9 percent to 5.5 percent, said Angus Nicholson of IG in a report.

Economists expect the data to show the U.S. economy added 175,000 jobs July, with the unemployment rate dipping to 4.8 percent from 4.9 percent.

The Labor Department said Thursday applications for unemployment aid rose to 269,000 last week, a level close to historical lows and a positive sign for the job market.