Stocks rise as China fuels global growth - market wrap

China GDP grew 6.9 percent in second quarter, beating forecast of 6.8 percent.

Stocks extended to fresh highs as economic data in China boosted optimism for global growth. Chinese shares were hit by concern that policies to reduce leverage in Asia’s biggest economy will curb earnings. The kiwi sank after the deputy governor of New Zealand’s central bank said a lower currency would help rebalance growth.

Japanese markets were closed for Marine Day.

Futures on the U.K.’s FTSE 100 Index indicated gains at the start of London trading. The U.S. dollar remained close to the lowest since September, with speculators holding on to the most bearish positions on the greenback since 2013 because of the weaker economic data at Friday.

MSCI Asia Pacific Index advanced 0.3 percent, extending last week’s 3.1 percent surge.
South Korea’s Kospi rose 0.4 percent and Hong Kong’s Hang Seng Index climbed 0.6 percent. Australia’s S&P/ASX 200 was down 0.2 percent.

The Shanghai Composite Index was down 0.7 percent after falling as much as 2.6 percent. Chinese shares were hit on concerns over the implications of a weekend meeting where President Xi Jinping said the central bank would play a greater role in defending against risks.

The yen slid 0.1 percent to 112.64 per dollar after climbing 1.2 percent last week. The Bloomberg Dollar Spot Index was up 0.1 percent Monday.
The Korean won was the strongest major Asian currency, rising 0.5 percent. It is the region’s best performer year-to-date, climbing 7.1 percent versus the greenback. The Aussie and kiwi both declined 0.2 percent. The pound and euro were off 0.1 percent.

Treasury futures were little changed after the 10-year yield dropped five basis points last week to 2.33 percent.

West Texas Intermediate crude advanced 0.3 percent to $46.66 a barrel, heading for a sixth day of gains.
Gold rose 0.2 percent to $1,231.17 an ounce.

Source: Bloomberg Pro Terminal

Jr Trader Ivan Ivanov

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