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Global stocks up on strong Japanese, European data

Stock markets had an upbeat start to the week after stronger-than-expected economic data from Japan and the eurozone. Attention is likely to focus this week on Friday’s release of U.S. growth data, as investors adapt to expectations the Federal Reserve will hike interest rates in December.

KEEPING SCORE: Germany’s DAX gained 0.9 percent to 10,808 and France’s CAC40 was up 0.8 percent to 4,572. The FTSE 100 of Britain rose 0.2 percent to 7,031. U.S. shares looked set to rise, with Dow and S&P 500 futures up 0.4 percent.

JAPAN DATA: Japan posted a trade surplus of 498.3 billion yen ($4.8 billion) in September, compared with a deficit of 18.7 billion yen in August. While exports fell 6.9 percent from a year earlier, pulled lower by anemic demand for autos and machinery, that was better than the forecasts for a decline of more than 10 percent. Meanwhile, a preliminary survey of factory managers showed a fifth straight month of improvement in manufacturing sentiment and the measure for output rose for the first time since January.

EUROZONE GROWTH: A separate survey, by IHS Markit, found that business activity in the 19-country eurozone grew in October at its fastest pace this year. The survey saw a rebound in Germany and found that orders and order backlogs were growing — a good sign for the months ahead.

LOOKING AHEAD: The U.S. growth figures due Friday for the July-September quarter will no doubt be “the highlight of the week,” Chris Weston of IG said in a commentary. “Keep in mind that growth has averaged around 1 percent in the past three quarters, so a snap back to the consensus estimate of 2.5 percent would be welcomed.”

ASIA’S DAY: The Shanghai Composite index led gains, adding 1.2 percent to 3,128.25, while Hong Kong’s Hang Seng jumped 1 percent to 23,604.08. They were bolstered by reports that China’s banking watchdog called for stricter oversight of the real estate market and controls on risks related to industries with excess capacity and local government debts. Japan’s Nikkei 225 rose 0.3 percent to 17,234.42. South Korea’s Kospi climbed 0.7 percent to 2,047.74 and India’s Sensex advanced 0.4 percent to 28,191.88. Australia’s S&P ASX 200 fell 0.4 percent to 5,408.50.

ENERGY: Benchmark U.S. crude fell 53 cents to $50.32 a barrel in electronic trading on the New York Mercantile Exchange. It rose 22 cents on Friday. Brent crude, used to price international oils, shed 34 cents to $51.44 a barrel. It gained 40 cents Friday.

CURRENCIES: The dollar rose to 104.00 yen from 103.80 on Friday. The euro rose to $1.0894 from $1.0886.


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