World stocks higher on last day of tor­rid third quar­ter of 2015

The China Post - - BUSINESS INDEX & -

Global stock mar­kets bounced higher Wed­nes­day, led by gains in Ja­pan where in­vestors were buoyed by ex­pec­ta­tions for more eco­nomic stim­u­lus. But most stock bench­marks have lost ground for the quar­ter, weighed down by the prospect of higher U. S. in­ter­est rates and weak growth in many ma­jor economies.

Europe opened higher with Bri­tain’s FTSE 100 up 2.1 per­cent to 6,032.88. France’s CAC- 40 jumped 2.6 per­cent to 4,457.17 and Ger­many’s DAX gained 2.5 per­cent to 9,686.39. The worst per­form­ing of those in­dexes, the DAX, is down 12.5 per­cent for the July- Septem­ber quar­ter, which ends Wed­nes­day. Wall Street was set for big gains. Dow fu­tures were up 1.1 per­cent at 16,129.00. The Dow Jones in­dus­tri­als is down 8.8 per­cent in the past three months. S& P 500 fu­tures gained 1.1 per­cent to 1,895.90. The in­dex is off 8.4 per­cent so far this quar­ter.

In Asia, Ja­pan’s Nikkei 225 surged 2.7 per­cent to 17,388.15 af­ter slid­ing 4.1 per­cent on Tues­day amid a global mar­ket sell- off. It is down 13.5 per­cent for the quar­ter. China’s Shang­hai Com­pos­ite In­dex was 0.5 per­cent higher at 3,052.78 but has lost 24.6 per­cent in three months. Hong Kong’s Hang Seng in­dex added 1.4 per­cent to 20,846.30 and Aus­tralia’s S& P/ ASX 200 gained 2.1 per­cent to 5,021.60. South Korea’s stock mar­ket fin­ished 1 per­cent higher at 1,962.81.

Tokyo stocks gained amid ex­pec­ta­tions for more mon­e­tary and fis­cal stim­u­lus fol­low­ing weak­ness in re­cent eco­nomic data. Do­mes­tic de­mand is tepid in the world’s third- big­gest econ­omy and China’s slow­down has also crimped Ja­panese ex­ports. The quar­terly Tankan busi­ness con­fi­dence sur­vey due Thurs­day will show how busi­nesses are feel­ing about the fu­ture, pos­si­bly pro­vid­ing a trig­ger for ac­tion from pol­i­cy­mak­ers. Re­ports on main­land China’s man­u­fac­tur­ing and ser­vices in­dus­tries are also due Thurs­day.

“Ja­pan will be in­clined to boost both fis­cal and mon­e­tary stim­u­lus soon” if the risks of a slow­down in China do not fade in a few months, Mizuho Bank said in a daily note. “The real ques­tion is not if more stim­u­lus may be ex­pected, but rather, how much stim­u­lus will be rolled out, and when.”

In­vestors are wait­ing for jobs data and the top U. S. cen­tral banker’s re­marks for clues about when the Fed­eral Re­serve will raise in­ter­est rates. Pol­i­cy­mak­ers have said they will likely raise in­ter­est rates be­fore the end of the year. On Thurs­day, U. S. pay­roll pro­ces­sor ADP re­ports how many jobs pri­vate em­ploy­ers added in Septem­ber and Fed­eral Re­serve Chair Janet Yellen gives open­ing re­marks to a com­mu­nity bank­ing con­fer­ence.

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