Global Markets Rise as Japan Stocks Surge Over 3% Following Strong US Retail Data

Japanese stocks led global gains on Friday after Wall Street experienced one of its best days of the year, fueled by stronger-than-expected U.S. economic data, particularly from consumer spending.

European markets also saw gains, with Germany’s DAX up 0.5% to 18,268.78 and France’s CAC 40 rising 0.2% to 7,440.64. However, London’s FTSE 100 fell 0.3% to 8,326.47, despite a rebound in U.K. retail sales from a 0.9% decline in June to a 0.5% increase in July, according to the Office for National Statistics.

Futures for the S&P 500 and for the Dow Jones Industrial Average both edged 0.1% higher.

In Tokyo, the Nikkei 225 ended a week of gains with the index surging 3.6% to 38,062.67, setting the stage for its best week in four years. It rebounded from the large selloff last week, where the higher interest rate from the Bank of Japan made investors who had borrowed in yen and invested in dollar assets sell their holdings to cover the higher costs in the “carry trades” deals.

The yen went weaker against the greenback this week. The dollar fell slightly to 148.72 yen from 149.27 yen on Friday trading, but it was hovering around 146 yen during the previous week.

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Hang Seng and Shanghai Composite Stocks See Modest Gains

The Hang Seng Index in Hong Kong rose by 1.9% to 17,430.16, while the Shanghai Composite Index increased slightly by 0.1% to 2,879.43.

In an interview with Chinese state media on Thursday, Chinese central bank governor Pan Gongsheng announced that new policies are being developed to boost economic growth in the latter half of the year. These measures include speeding up enhancements to the central banking system and focusing more on the financial technology sector.

Additionally, he noted a substantial reduction in the overall cost burden of local government debt.

A year ago, such reports could have sent the stock market reeling on worries they would push inflation higher. But good news for the economy is once again good news for Wall Street, particularly after a report showed U.S. employers pulled back on their hiring last month by much more than expected

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