On Thursday, the global stocks progressed moderately higher, supported by the rumor that the central bank of China will ease next week’s financial policy when Hong Kong and Chinese markets are shut down for a long holiday.
The stocks of Europe, which took a backseat on Wednesday, moved back to some extent. FTSE 100 of Britain increased to 5,777.06, almost an increase of 0.2%. DAX of Germany climbed 0.4% to 7,302.57 and CAC-40 of France profited 0.4% to 3,427.69.
Wall Street seems to have been set for profits. The industrial futures of Dow Jones added 0.3%, attaining 13,388, while Standard & Poor 500 future’s increased 0.3%, reaching 1,431.80.
The positive tone was already set in Asia, assisted by anticipations that the People’s Bank of China will take more measures soon to ease the recession in the world’s second largest economy.
Hang Seng, Hong Kong rose over 1.1% to 20,762.29, while Shanghai Composite Index climbed 2.6% to 2,056.32. Shenzhen Composite Index also profited 2.6% to 837.96.
Kospi, South Korea climbed to 1,988.70, indicating an increase of 0.4%. The standards in Taiwan, Thailand, Indonesia, and Singapore also increased.
A strategist working at Hong Kong’s First Shanghai Securities, Linus Yip told that they were not aware of what could happen over the extended holiday and they did not have adequate time to react and that is the reason they were carrying out some risk management and portfolio management this week.
Nikkei 225, Japan increased to 8,949.87, signifying a rise of 0.5%, a day ahead of the release of August chief financial data. The analysts at Singapore’s DBS Bank Ltd told that industrial production is likely to contract, while the retail sales growth is expected to remain negative.
In a market commentary, DBS told that the conditions for global demand have stayed weak and the stance is uncertain and subdued. Moreover, there is the latest escalation of the Japan-China tensions, which could further deteriorate the demand for exports from China in short term.
In Tokyo, all Nippon Airways dropped 2.4%, one day after the airline told the number of seats that were cancelled by Japanese customers who had scheduled to go to China attained around 40,000 for the period September- November, according to reports from Kyodo News.
On Wednesday, the aggressive protests on the Madrid and Athens streets sent stocks steeply lower, relighting concerns over the ability of Europe to execute the steps required to handle its big debts.