Global Markets Gain -- Update
13 Juli 2020 - 09:54AM
Dow Jones News
By Joanne Chiu and Anna Isaac
International markets advanced, tracking an end-of-week rally in
U.S. stocks, and buoyed by a weaker dollar.
European benchmarks climbed Monday. The pan-continental Stoxx
Europe 600 rose 0.8%, with gains in the region led by Germany's DAX
and the U.K.'s FTSE 100.
Government bonds yields across the continent rose, as equities
rallied. The yield on the 10-year U.S. Treasury ticked up to 0.635%
from 0.633% Friday.
In afternoon trading in Hong Kong, the Hang Seng gained about
1%, while Japan's Nikkei 225 increased more than 2%. China's
Shanghai Composite rose 1.4% and South Korea's Kospi Composite
gained 1.8%. Australia's S&P/ASX 200 rose about 1%.
The rally in mainland stocks takes the Shanghai Composite's
year-to-date gains to about 12.5%, making it one of the world's
best-performing major indexes in 2020. The gauge has risen for nine
of the past 10 sessions.
Growing conviction that China's economy is recovering from the
coronavirus has encouraged investment in Chinese stocks from
foreign institutions, and from the millions of individual investors
that dominate trading in China. State media touted the benefits of
a "healthy bull market," before trying to temper over-exuberance by
reminding investors to think long-term.
Vincent Wen, an investment manager at KCG Securities Asia, said
the recent stock rally in China had been too fast. It's a
policy-driven market, he said, in which investors were too focused
on official messages and the prospect of easy monetary policy.
"Fundamentally speaking, the real economy remains weak and the path
to recovery will be bumpy," he said.
The WSJ Dollar Index, which measures the U.S. currency against
16 others, fell 0.2% to 90.71.
Singapore's Straits Times Index fell modestly, after the
opposition party made significant gains in national elections,
though the city-state's ruling party retained power.
E-mini S&P 500 futures rose 0.6%, suggesting U.S. stocks
could rise on Monday at the start of trading. The Dow Jones
Industrial Average advanced 1.4% Friday, as investors shrugged off
a resurgence of coronavirus infections in the U.S. and
elsewhere.
This week brings earnings releases from some U.S. banks, as well
as key economic data, including U.S. retail sales and Chinese trade
and economic-growth data.
Write to Joanne Chiu at joanne.chiu@wsj.com and Anna Isaac at
anna.isaac@wsj.com
(END) Dow Jones Newswires
July 13, 2020 03:39 ET (07:39 GMT)
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