Stock markets in the Asia-Pacific region and Europe saw gains on Thursday. This uptick was attributed to several factors: the UK’s economic recovery, China’s recent stimulus measures, and expectations surrounding the US consumer price index.
The Hang Seng index in Hong Kong led the positive movement in the Asian markets. The rise on Oct. 12 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’s rally was bolstered by data from the UK. Reports showed economic growth in August, although some sectors still lagged behind.
China led the bullish stock rally in the Asian market
China’s national wealth fund announced an increase in its holdings in the country’s four largest banks on Thursday. The news helped shares of all three main lenders in the country go up during Shanghai’s trading hours. The stock of the Bank of China increased by 3.2%, while China Construction Bank saw an increase of 2.7%, the Industrial and Commercial Bank of China registered a 2.5% gain while the Agricultural Bank of China increased by 0.6%.
China’s stimulus decisions also helped Hong Kong’s Hang Seng Index rise by 1.9% to 18257 points for the day, marking the sixth consecutive day of gain for the benchmark index, its longest winning streak since November 2021.
Japan’s Nikkei 225 stock index recorded another 1.8% gain on Thursday to reach 32494.66 points, marking its second consecutive day of gains
European stocks three-week high led by London
The British economy rose by 0.2% in terms of gross domestic product (GDP), in August compared to the previous month, exceeding estimates of less than 0.1%. This GDP growth rate helped reverse a slide in the economy that began in July with a 0.5% contraction.
The bullish economic growth for the UK helped the European stock market to rise to a new three-week-high. The benchmark London stock index FTSE 100 rose 0.8%, while the Paris CAC 40 was up 0.6% and the pan-European Stoxx 600 traded 0.8% higher on Thursday.
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