Stocks at fresh highs as Australia cuts rates Tuesday 10:30 BST. Global stocks are at fresh cyclical highs as Australia's central bank adds to the trend of easier monetary policy. Tokyo shares surged to their best level in nearly five years as Japanese markets reopened after a two-day holiday in which the yen fell, the European Central Bank cut rates and US jobs data beat estimates. The combination of revived optimism over the world's biggest economy and ongoing central bank largesse - most notably from the large asset purchase programmes of the Federal Reserve and Bank of Japan - sees the FTSE All-World equity index up 0.4 per cent to 245.3, its highest level since June 2008. That "Goldilocks" scenario - growth that is not too cold but not so hot that it precludes central bank assistance - also helped Wall Street's S&P 500 close Monday's session at a record high of 1,617.5, and futures suggest the benchmark will add another 1 point when the opening bell rings later on Tuesday. The firm tone to stocks is reducing demand for highly-rated fixed income, with 10-year Treasury yields fractionally higher at 1.77 per cent and equivalent duration Bunds up 4 basis points to 1.28 per cent. Tokyo was the standout performer among national bourses, with the Nikkei 225 bouncing 3.6 per cent to trade above 14,000 for the first time since before the collapse of Lehman Brothers at the height of the financial crisis in autumn 2008. Analysts say that improving Japanese corporate earnings could boost sentiment further in the days ahead, with automakers welcoming the weaker yen. Last week, before the pause for Golden Week holidays, Nomura reported that 52 per cent of Japanese companies that it covers had beaten their own operating profit forecasts for the full fiscal year to March by 5 per cent or more, while 14 per cent had missed by at least 5 per cent. The yen weakened to the Y99 level against the US dollar from below Y98 before the four-day Golden Week break. The sliding yen - which has fallen against all 16 major currencies so far in May - looks likely to underpin profits over the medium term. The break-even dollar/yen rate for exporting companies across all industries was Y83.9 in the last fiscal year, according to Japan's Cabinet Office. "After brutal cost-cutting over the yen's white-knuckle ride to [Y75 to the dollar], Japanese companies have substantial operational gearing to kick in," said Nicholas Smith, strategist at CLSA in Tokyo. Not even the sight of some mild "profit taking" in short yen positions on Tuesday could halt the Tokyo's stock market's ascent. The Japanese unit is firmer by 0.2 per cent versus the dollar to Y99.13. Another currency in focus is the Australian dollar, which is down 0.7 per cent to a two-month low of $1.0745, after the Reserve Bank of Australia trimmed interest rates by 25 basis points to a record low of 2.75 per cent and left open the possibility of further cuts. Such monetary easing by the developed world's central banks is a function of tempered economic activity, but of late investors globally have been rewarding the intent rather than worrying about the reason. The RBA's move helped Sydney's S&P/ASX 200 index pare losses, but it was still down 0.2 per cent by the close with banking shares under pressure after Australia's regulator said it would not delay the implementation of new minimum liquidity standards. Indeed, aside from Tokyo, the action across Asia-Pacific was decidedly mixed. South Korea's Kospi dipped 0.4 per cent as traders reckoned that what is good for Japan's exporters is bad for their Korean counterparts. China's Shanghai Composite index added 0.2 per cent while Hong Kong's Hang Seng index was up 0.6 per cent. European bourses opened with mild gains, leaving the FTSE Eurofirst 300 up 0.3 per cent. The euro is steadier after recent sharp moves on the back of comments from ECB president Mario Draghi. Mr Draghi reiterated on Monday that he stood ready to ease policy further if needed. The single currency is adding just 4 pips to $1.2078. In commodities, concerns about global growth leave the sector struggling to add to last week's sharp rally. Copper, which had surged 6.7 per cent to $3.31 a pound on Friday following the US jobs data, is barely changed. Brent crude is off 29 cents to $105.17 a barrel. Gold is losing $7 to $1,462 an ounce.