The positive outlook provided by China economic data, which was made available on April 9, helped boost global stocks on expectations of better earnings by companies, as the yen also bounced back from a slide against the dollar.
Chinese inflation report indicated the possibility of a favorable monetary policy from authorities in the Asian country. Data revealed that the level of annual consumer inflation in China improved for better in March, on the back of decline in prices of food from nine-month highs, while producer price deflation in the country continued.
The immediate impact of the favorable economic data from China was seen in the performance of stocks around the world, with the Dow Jones industrial average closing at a record high.
The Dow Jones industrial average improved 59.98 points (0.41 percent) at 14,673.46, while the Standard & Poor’s Index climbed 5.54 points (0.35 percent) at 1,568.61. At 3,237.86, the NASDAQ Composite Index rose 15.61 points (0.48 percent). Commodities which include oil and copper were also benefiting from the China report.
While the yen was able to halt a three-day slide against the U.S. dollar, the Japanese currency remained volatile. According to Reuters, the yen slumped to 99.66 per dollar, before rebounding to 98.58 to the dollar. Analysts suppose that the improvement in the Japanese currency would be temporary.
The U.S. dollar has gained more than 7 percent against the yen since the week of April 1-7, after the Bank of Japan announced an aggressive stimulus program that involves purchases of long-term government bonds.
Technology and energy sectors were the top performers on April 9. Microsoft Corp was the top percentage gainer on the Dow, climbing 3.6 percent to $29.61. Intel Corp improved 3.1 percent to $21.75. Energy stock SPNY gained 0.8 percent.
MSCI’s world equity index, which includes share prices in 45 countries in its computation, rose 0.6 percent. FTSE Eurofirst 300 index was up only 0.05 percent.