Global Stocks Gain as Hopes Pegged on US Data, Japan Aid

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Global Stocks Gain as Hopes Pegged on US Data, Japan Aid

World stocks edged higher on Wednesday as data indicated improvement of the US economy and investors anticipated that the Japanese government would inject stimulus into the country’s economy.

Japan’s Nikkei 225 was Wednesday’s top performer, advancing 1% to hit 14,946.32, after companies’ poor economic prospects fueled optimism that the Bank of Japan would embark on an additional stimulus program in the near future, according to Bloomberg.

Hang Seng of Hong Kong jumped 0.3% to stand at 22, 523.94 while South Korea’s Kospi climbed 0.3% to reach 1,997.25.

China’s Shanghai Composite advanced 0.6% to stand at 2,155.70, with investors ignoring two reports that painted a gloomy picture of manufacturing.

In Australia, Sydney’s S&P/ASX 200 reached 5,403.30 after gaining 0.3%. Indian shares continued their weaning streak ahead of elections scheduled for next week. The Sensex gained 0.4% to 22, 542.55 

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The chair of the US Federal Reserve Janet Yellen gave markets reason for optimism on assurances she would keep monetary policy eased for a while. A survey that indicated growth of the US manufacturing had the same positive effect on global stocks, as investors shrugged off reports that suggested weaknesses in Chinese manufacturing.

“If sentiment is a key component in driving price around, I should think these markets can continue higher,” chief strategist Chris Weston of IG said.

European markets registered slight improvements on Wednesday as investors anticipated a private jobs report in US that would indicate growth rate of job creation.

As reported by Financial Times, the FTSE Eurofirst 300 went up 0.2% while the Asia-Pacific equivalent surged 0.4%.

DAX of Germany grew 0.3% to 9, 628.50. UK’s FTSE 100 climbed 0.1% and hit 6,655.94. The CAC 40 of France advanced 0.1% to 1,880.90.

Futures indicated prospects of gains on Wall Street. Dow futures surged 0.2% to 16,480 while S&P 500 futures grew 0.2% to 1,880.90.        

To contact the reporter of this story; Jonathan Millet at john@forexminute.com