Stock markets in the Asia-Pacific and Europe regions saw gains on Thursday. This rise is due to the economic recovery in the United Kingdom, recent stimulus measures taken by China and expectations surrounding the consumer price index in the United States.
Hong Kong’s Hang Seng Index led a positive movement in Asian markets. The October 12 rise came after reports that China’s sovereign wealth fund had increased its investments in some of the country’s major banks.
In Europe, the stock market rally was reinforced by data from the United Kingdom, where reports showed economic growth in August, although some sectors are still lagging.
China led the bullish rally in stocks in Asia
China’s sovereign wealth fund announced an increase in its holdings in the country’s four largest banks on Thursday, October 12. The news helped shares of all three of the country’s major lenders rise during trading hours in Shanghai. Shares of the Bank of China rose 3.2%, the China Construction Bank saw a 2.7% increase, the Industrial and Commercial Bank of China posted 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 1.9% to 18,257 points for the day, marking the sixth straight day of gains for the benchmark index – its longest winning streak since November 2021.
Japan’s Nikkei 225 index posted another 1.8% gain on Thursday to reach 32,494.66 points, marking its second straight day of gains.
European stocks hit three-week high, led by London
The British economy rose by 0.2% in terms of GDP in August compared to the previous month, beating estimates by less than 0.1%. This GDP growth helped reverse the economic decline that began in July with a contraction of 0.5%.
Bullish UK economic growth helped European stock markets rise to a new three-week high. London’s benchmark FTSE 100 index rose 0.8%, France’s CAC 40 index rose 0.6%, and the European Stoxx 600 index traded 0.8% higher on Thursday.
Vintage Markets is dedicated to in-depth exploration and reporting of traditional financial news, tracking the journey of global markets and economies from the Stone Age to the Stone Age.