Japanese benchmark leads world stocks higher

HONG KONG - Japanese stocks rocketed Monday, leading a global market rally after dismal growth data raised hopes of extra stimulus for the world's third-biggest economy.

See Full Article

Chinese shares dropped on their first day of trading after a weeklong holiday that coincided with a sharp sell-off in global markets.

Japan's benchmark Nikkei 225 soared 7.2 per cent to close at 16,022.58, rebounding from last week's slump to post its second biggest one-day gain in three years.

Stocks rallied after government data showed Japan's economy shrank 1.4 per cent on an annualized basis last quarter because of weak consumer demand and slower exports. It's a setback for Prime Minister Shinzo Abe's economic revival program, which aims to stoke inflation through massive monetary easing. However, the latest report also gives the government more reason to open the stimulus taps wider to restore growth, economists said.

"Together with the recent slump in the Nikkei and the appreciation of the yen, the case for additional easing remains compelling," said Marcel Thieliant of Capital Economics. He predicted the Bank of Japan will step up bond purchases and push interest rates that are already in negative territory even lower.

Investor sentiment was also bolstered by comments from China's central bank chief playing down the likelihood of a one-off devaluation of the yuan.

People's Bank of China Governor Zhou Xiaochuan signalled in a Caixin magazine interview published over the weekend that there was no basis for further depreciation of China's currency, providing relief for the country's exporting neighbours worried that a weakening yuan would hurt their competitiveness.

Global stock benchmarks followed Japan's lead. European shares opened sharply higher. France's CAC 40 advanced 3.1 per cent to 4,119.57 and Germany's DAX added 2.7 per cent to 9,210.14. Britain's FTSE 100 rose 2 per cent to 5,819.92.

U.S. stocks were poised for a strong open. Dow futures gained 1.2 per cent to 16,102.00. Broader S&P 500 futures increased 1.2 per cent to 1,880.40.

In Asia, South Korea's Kospi climbed 1.5 per cent to 1,862.20 and Hong Kong's Hang Seng was up 3.3 per cent to 18,918.14. Australia's S&P/ASX 200 rose 1.6 per cent to 4,843.50. Taiwan's benchmark was flat while markets in Southeast Asia gained.

The Shanghai Composite Index in mainland China, though, lost 0.6 per cent to finish at 2,746.20 after reopening following the Lunar New Year holiday.

Chinese shares were also weighed down by the latest monthly trade figures. Exports fell 11 per cent while imports slid by nearly a fifth, according to customs data, highlighting persistent weakness in the world's second biggest economy.

Economists, however, were reserving final analysis until figures for February are out because the timing of the Lunar New Year holiday distorts China's economic data at the beginning of the year.

In energy trading, benchmark U.S. crude oil futures lost 30 cents to $29.12 a barrel in electronic trading on the New York Mercantile Exchange. The contract climbed $3.23, or 12.3 per cent, on Friday to settle at $29.44 a barrel. Brent crude, a benchmark for international oils, fell 38 cents to $32.98 a barrel in London.

In currencies, the dollar strengthened to 113.78 yen from 113.22 yen on Friday. The euro weakened to $1.1194 from $1.1257.



Advertisements

Latest Economic News

  • After beating us at chess and Go, artificial intelligence is playing the markets: Don Pittis

    Economic CBC News
    Elon Musk has raised the alarm about artificial intelligence wiping out humanity, but the SpaceX and Tesla boss still hasn't warned you that AI may be coming for your investments. When Google-owned DeepMind's AlphaGo conquered a human champion at the game of Go last year, it was widely regarded as a watershed in machine learning. Source
  • In Windsor-Detroit bridge battle, billionaire Matty Moroun wins a round, but the fight is not over

    Economic CBC News
    A recent permit granted to the owner of the Ambassador Bridge to build a second span over the river between Windsor and Detroit was a victory for Matty Moroun, the wily American billionaire who has waged a fierce battle to block Ottawa's construction of its own bridge. Source
  • Irma's hit to Florida citrus crop will put squeeze on your morning glass of juice

    Economic CBC News
    After tearing through the Caribbean, Hurricane Irma piled through the heart of Florida's citrus growing region, completely destroying some groves, and causing damage that will not only send prices higher, but also possibly threaten the health of the entire industry. Source
  • Asian stocks mixed after weekend of global election results

    Economic CTV News
    HONG KONG - Asian shares were mixed on Monday as investors turned their attention to global politics and evaluated weekend election results from Germany and New Zealand. KEEPING SCORE: Japan's Nikkei 225 index rose 0.6 per cent to 20,414.93 but South Korea's Kospi lost 0.4 per cent to 2,380.38. Source
  • Too soon to tell if NAFTA deal can be reached by deadline: Chief negotiator

    Economic CTV News
    OTTAWA -- Canada's chief negotiator says solid progress is being made in talks to rewrite the North American Free Trade Agreement, but it's too soon to tell if a deal can be reached by the year-end deadline set by the United States. Source
  • Alibaba's online payment platform AliPay coming to Canada: company

    Economic CTV News
    TORONTO - Chinese online shopping giant Alibaba Group's online payment platform AliPay will officially launch in Canada through a partnership with Canadian tech firm Snap Pay Inc. Canadian retailers will be able to accept Chinese currency from Chinese shoppers starting this week. Source
  • U.S. dairy takes aim at Canadian supply management in round 3 of NAFTA

    Economic CTV News
    OTTAWA -- The first punches in what promises to be a bitter fight over Canada's protected dairy industry are expected to be thrown during this week's third round of North American Free Trade talks in Ottawa. Source
  • C'est la vie: Canadian energy producer accepts French drilling ban with a shrug

    Economic CTV News
    CALGARY -- The traditional 20th anniversary present is china but Canada's Vermilion Energy Inc. is getting quite a different gift for its second decade as a light oil producer in France: a divorce petition with an implementation date of 2040. Source
  • How car dealerships upsell you: CBC's Marketplace consumer cheat sheet

    Economic CBC News
    Miss something this week? Here's the consumer news you need to know from CBC's Marketplace. Get this in your inbox every Friday. Sign up here. What got out in the Equifax hack? A massive cybersecurity breach may have exposed the personal information of about 100,000 Canadians. Source
  • Boeing-Bombardier ruling slated for Monday

    Economic CTV News
    OTTAWA -- Politicians, defence officials and Canada's aerospace industry have Monday circled on their calendars as the date to watch in Boeing's ongoing trade dogfight with Montreal-based Bombardier. Here's what you need to know, and what is expected to follow: Source