London, July 24: Global equity markets soared Friday, extending a blistering rally which has notched up peaks for the year around the world, as economic recovery hopes were sparked by positive US data and corporate results.
“The stellar run continues. A return of confidence has given the markets real impetus to push higher,” said senior sales manager Chris Hossain at ODL Securities in London.
Asian stocks advanced Friday, with Japan’s Nikkei index rising for an eighth straight day after Wall Street posted its best finish of the year, riding a wave of upbeat corporate earnings news.
European markets also forged higher in late morning deals after an earlier bout of profit-taking. London shares rose 0.73 percent, Frankfurt gained 0.80 percent and Paris won 0.75 percent.
All three European markets had jumped higher Thursday to chalk up a ninth consecutive day of gains and finish at their highest levels since January.
In New York, a third monthly rise in US existing home sales and much better-than-expected results for Ford Motor had pushed the Dow Jones Industrial Average above 9,000 points for the first time since early this year.
“Propelled by US figures and existing homes sales, equity markets continue to rally,” added Newedge analysts in a research note to clients.
The global rally, which pushed Hong Kong’s Hang Seng Index above 20,000 points briefly for the first time since September 2008, reflects growing optimism that companies are seeing signs of a recovery after a crippling global recession.
“I definitely think a recovery is taking hold,” said Jan Lambregts, head of research for Asia at Rabobank Global Financial Markets.
Recovery hopes helped Tokyo’s Nikkei rise 1.55 percent to finish at its highest level in more than three weeks.
Japan’s government said the world’s second-largest economy has been showing “signs of recovery”, helped by government stimulus measures, although rising unemployment and renewed deflation pose risks.
Elsewhere, Sydney closed up 0.63 percent, Seoul gained 0.4 percent and Hong Kong was up 0.34 percent in late trade.
Investors took their cue from Wall Street, where shares surged to their highest levels of 2009 Thursday as investors cheered upbeat housing data and signs of an improvement in corporate earnings.
The Dow Jones Industrial Average vaulted above 9,000 for the first time since early January, gaining 188.03 points, or 2.12 percent, to close at 9,069.29, the best close for blue chips since November 5.
Investors even managed to set aside disappointing results from US software giant Microsoft late Thursday.
“Once again equity markets have rallied both on Wall Street and overnight in Asia, ignoring disappointing figures from Microsoft,” said Calyon analyst Stuart Bennett.
Investors in Asia were also heartened by news that South Korea’s economy grew 2.3 percent in the three months to June, the fastest pace in more than five years, underpinning optimism that Asia’s export-led economies are on the mend.
The National Association of Realtors said sales of existing US homes rose 3.6 percent in June, raising hopes of a turnaround in the depressed housing market.
The market was also encouraged by better-than-expected earnings reports from key American firms such as Ford, 3M, and AT&T.
–Agenices