Stock markets in the Asia-Pacific region and Europe saw gains on Thursday. This uptick was attributed to the United Kingdom’s economic recovery, China’s recent stimulus measures and expectations surrounding the United States Consumer Price Index.
The Hang Seng Index in Hong Kong led a positive movement in the Asian markets. The Oct. 12 rise came after reports that China’s sovereign wealth fund increased its investment in some of the country’s major banks.
In Europe, the stock market rally was bolstered by data from the United Kingdom, with reports showing economic growth in August, although some sectors still lagged.
China led bullish stock rally in Asia
China’s sovereign wealth fund announced an increase in its holdings in the country’s four largest banks on Thursday, Oct. 12. The news helped shares of all three main lenders in the country go up during Shanghai’s trading hours. Bank of China stock increased by 3.2%, the China Construction Bank saw an increase of 2.7%, the Industrial and Commercial Bank of China registered a 2.5% gain, and the Agricultural Bank of China jumped 0.6%.
China’s stimulus decisions also helped Hong Kong’s Hang Seng Index rise by 1.9% to 18,257 points for the day, marking the sixth consecutive day of gains for the benchmark index — its longest winning streak since November 2021.
Hong Kong Hang Seng Index daily price chart. Source: investing.com
Japan’s Nikkei 225 index recorded another 1.8% gain on Thursday to reach 32,494.66 points, marking its second consecutive day of gains
Japan Nikkei 225 index daily price chart. Source: Investing.com
European stocks three-week high led by London
The British economy rose 0.2% in gross domestic product terms in August compared to the previous month, exceeding estimates of less than 0.1%. This GDP growth helped reverse a slide in the economy that began in July with a 0.5% contraction.
The bullish economic growth for the U.K. helped European stock markets rise to a new three-week-high. The benchmark London stock FTSE 100 Index rose 0.8%, the French CAC 40 was up 0.6% and the pan-European Stoxx 600 traded 0.8% higher on Thursday.
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Author: Prashant Jha