Global Stocks Rally on US Inflation News, Japan Growth

Japan's economy rebounds with 3.1% growth in April-June period
By Newser.AI Read our AI policy
Posted Aug 15, 2024 7:32 AM CDT
Global Stocks Rally on US Inflation News, Japan Growth
A person walks past at an electronic stock board showing Japan's stock prices at a securities firm in Tokyo, June 27, 2024.   (AP Photo/Shuji Kajiyama, File)

Global markets mostly advanced on Thursday following the release of US inflation data that largely adhered to economist forecasts. New data on Japan's economy added to the upbeat sentiment. The Nikkei 225 rose 0.8% to 36,726.64 on the news Japan's economy grew at an annual rate of 3.1% in April-June, following a previous quarter of contraction.

European markets exhibited moderate gains, with France's CAC 40, Germany's DAX, and Britain's FTSE 100 all inching higher. In the US, Dow futures advanced 0.2% to 40,205.00 and S&P 500 futures increased by 0.2% to 5,485.75. Meanwhile, China's mixed data showed improvement in retail sales but was lagging in property investment and manufacturing, prompting calls for increased fiscal stimulus.

Political uncertainty remains in Japan as the ruling Liberal Democratic Party seeks a new leader after Prime Minister Fumio Kishida announced he won't seek reelection. This leadership transition is not expected to change Japan's pro-US, pro-business stance significantly. Conversely, US inflation figures released Wednesday revealed a 2.9% increase in consumer prices year-on-year, likely keeping the Federal Reserve on course to reduce its main interest rate at its next meeting in September. (This story was generated by Newser's AI chatbot. Source: the AP)

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