Global Stock Markets Surge on Positive Economic Indicators and China's Stimulus Measures
Summary:
Stock markets across the Asia-Pacific and Europe experienced notable gains on Thursday, driven by the UK's economic recovery, China's recent stimulus measures, and expectations around the United States Consumer Price Index. Leading the rally in Asian markets was the Hang Seng Index in Hong Kong, as China's national wealth fund increased its investment in major banks. In Europe, buoyed by the UK's economic growth, stock markets reached a three-week high.
Thursday witnessed a surge in stock markets across Asia-Pacific and Europe. Driven by factors like the revival of the UK's economy, deployment of stimulus measures by China, and anticipations tied to the United States Consumer Price Index, this positive trend was particularly noticeable in the Asian markets with the Hang Seng Index in Hong Kong leading the way. The positive surge on October 12 followed the news of China's sovereign wealth fund amplifying its stakes in the country's major banks. Moving to Europe, a rally in the stock market was backed by data corresponding to the UK's economic increment in August, though certain sectors remain behind.
China spearheaded the winning rally in the Asian stocks. The country's national wealth fund disclosed an increase in its stakes in the top four banks on Thursday. This announcement lifted the shares of the three primary lenders in the country during the trading hours in Shanghai. The banking stocks showed a boost with the Bank of China witnessing a hike of 3.2%, China Construction Bank growing by 2.7%, Industrial and Commercial Bank of China registering a 2.5% rise, and Agricultural Bank of China increasing by 0.6%.
The decision by China for implementing stimulus measures also contributed to the rise of Hong Kong’s Hang Seng Index by 1.9%, reaching 18257 points for the day, marking the sixth consecutive day of growth for the index, its longest gaining streak since November 2021.
Japanese Nikkei 225 stock index also added another 1.8% gain on Thursday, reaching 32494.66 points, marking its second consecutive day of gains.
Aided by the UK’s economic revival, which showed a 0.2% increment in terms of GDP in August, compared to the month earlier, exceeding the expectations of a sub 0.1% increment, European stocks reached a three-week high. This growth in GDP managed to reverse the downward economic trend from July, which experienced a 0.5% contraction. This positively impacted the European stock market, with London's FTSE 100 stock index rising by 0.8%, Paris's CAC40 gaining 0.6%, and pan-European Stoxx 600 increasing by 0.8%.
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Published At
10/12/2023 2:11:36 PM
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