Asian markets surged Friday, with major indexes posting over 1 percent gains each, tracking the rally in European and U.S. equities overnight and getting a boost from a slight uptick in oil prices and comments from the European Central Bank (ECB).
Aiding the overnight rally, ECB chief Mario Draghi hinted that new stimulus may be forthcoming at the central bank's meeting in March.
"Monetary easing speculation is providing a boost for Asian markets today. Draghi's intimation that the ECB may be forced to ease further at their March meeting, as well as fomenting expectations that the Bank of Japan may ease further at their meeting next week, are all supporting the rally," said Angus Nicholson, market analyst at spreadbetter IG, in a note Friday. "The bigger question everyone in the markets is asking is whether we have seen the bottom. In my opinion, the short answer is no."
Some are skeptical that the ECB has much to offer markets. Uwe Parpart, managing director and head of research at Reorient Financial Markets told CNBC's "Squawk Box" the ECB does not have much ammunition to do anything drastic to set markets back on track.
The ECB can perhaps cut the deposit rate by another 10 or 20 basis points, according to Parpart, who added if the central bank chose to again talk about quantitative easing, without actually following through with actions, markets will not be impressed. "They will actually have to increase the amount of buying, which they did not do in December."
Despite the out-sized rally Friday, memories of the global rout that pushed several regional markets into bear territory this year have not entirely faded into a TGIF sentiment. "The rally in risk assets is a selling opportunity," Tim Condon, head of research for Asia at ING Financial, said in a note Friday.