Asian Shares Rise On Strong US Data, China Stimulus
Asian stocks traded higher on Friday as strong U.S. economic data and more stimulus measures from major importer China helped ease concerns around global growth.
The dollar retained overnight gains while crude prices held near their highest level since early-November 2022 after China cut banks’ cash requirements to release more liquidity into the Chinese economy and potentially shore up economic growth.
China’s Shanghai Composite index was down 0.2 percent despite China’s industrial output and retail sales figures for August coming in above expectations. Hong Kong’s Hang Seng index was up 0.3 percent.
Japan’s Nikkei average jumped 1.3 percent after the release of strong U.S. economic data and bets that the European Central Bank is done with rate hikes.
South Korea’s Kospi average climbed nearly 1 percent while Australia’s S&P ASX 200 jumped 1.6 percent, led by miners.
Across the Tasman, New Zealand’s benchmark S&P NZX-50 index was marginally higher.
U.S. stocks posted strong gains overnight as investors cheered better-than-expected retail sales data and the blowout debut of chip designer Arm.
A batch of economic data showed an uptick for producer price inflation, solid retail sales and an uptick in weekly jobless claims.
The Dow gained 1 percent to notch its biggest gain in a month, while the tech-heavy Nasdaq Composite and the S&P 500 both rose around 0.8 percent.
European stocks rose sharply on Thursday after the European Central Bank (ECB) piled on a 10th straight interest-rate increase but signaled a potential end to its rate-hike campaign aimed at curbing inflation.
The pan European STOXX 600 advanced 1.5 percent. The German DAX rallied 1 percent, France’s CAC 40 jumped 1.2 percent and the U.K.’s FTSE 100 soared 2 percent.
Source: Read Full Article