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

  • Asian markets drop as investors look ahead to Trump speech

    Economic CTV News
    BEIJING - Asian stock markets were lower Monday as investors looked ahead to U.S. President Donald Trump's speech to Congress this week for details of promised tax cuts and infrastructure spending. KEEPING SCORE: Tokyo's Nikkei 225 index fell 0.9 per cent to 19,107.47 and the Shanghai Composite Index lost 0.5 per cent to 3,237.14. Source
  • Billionaire industrialist Koch leads fight to deregulate African-style braiding

    Economic CTV News
    PAWTUCKET, R.I. -- The billionaire industrialist Charles Koch and hair braider Jocelyn DoCouto have at least one thing in common. They are both part of a national movement to deregulate the business of African-style braiding. Source
  • What's in your chicken? CBC's Marketplace consumer cheat sheet

    Economic CBC News
    Miss something this week? We've got you. Here's this week's consumer cheat sheet. Get the Marketplace newsletter in your inbox every week. Sign up here. Inflatable mattress (prices) So, that bed you got for a bargain? That deal may be less dreamy than you thought. Source
  • Vatican stakes out copyright to Pope Francis' image

    Economic CTV News
    VATICAN CITY -- God's love may be free, but the Vatican says it has a copyright on the pope. Unnerved by the proliferation of papal-themed T-shirts, snow globes and tea towels around the world, the Vatican has warned it intends to "protect" the image of Pope Francis and "stop situations of illegality that may be discovered. Source
  • Is the Ivanka Trump brand boycott anti-feminist?

    Economic CBC News
    After Nordstrom dropped Ivanka Trump's fashion line this month, a Fox News host blasted women boycotting stores that carry the brand. In an opening rant on her show, Jeanine Pirro called the boycotters "loud, classless women" who were unfairly picking on a fellow female simply because they dislike her dad, U.S. Source
  • Last BlackBerry-designed phone with physical keyboard to hit stores in April

    Economic CTV News
    TORONTO -- Fans of BlackBerry's classic physical keyboard will have reason to celebrate when the last product designed in part by the former smartphone leader becomes available in April. The Waterloo, Ont.-based firm played a role in developing the KEYone, named for the return of the QWERTY keyboard that other smartphone designers have mostly long retired. Source
  • Final cleanup begins at Dakota Access pipeline protest camp

    Economic CTV News
    BISMARCK, N.D. -- The U.S. Army Corps of Engineers has moved into the evacuated Dakota Access pipeline protest camp to finish the cleanup started weeks ago by the Standing Rock Sioux Tribe. A Florida-based company has been hired to provide trash removal and environmental cleanup in the main Oceti Sakowin camp on the north side of the Cannonball River and the smaller Rosebud camp on the south side. Source
  • Appealing to millennials, Las Vegas gets e-sports arena

    Economic CTV News
    LAS VEGAS -- The arena has all the features that a professional sports venue needs: stands, warm-up areas for teams, massive screens for spectators and a broadcast platform for commentators. But what distinguishes this new Las Vegas arena is its dozens of video game consoles. Source
  • Warren Buffett says don't waste money on investment fees

    Economic CTV News
    OMAHA, Neb. -- Billionaire Warren Buffett wants investors to be wary of the high fees Wall Street routinely charges because of the damage they do to investment returns, and he emphasized his confident outlook in the U.S. Source
  • 'We always find a way': N.L.'s oil-dependent economy is hurting, but there is hope on the horizon

    Economic CBC News
    Dwight Ball, the affable pharmacist who has been Newfoundland and Labrador's premier for the last 15 months, said something remarkable Wednesday while swinging an axe through several hundred government jobs. "We're human, too. This impacts us," said Ball, who clearly has shown no relish for the more brutal parts of dealing with an oil-dependent economy during a collapse in petroleum prices. Source