Frankfurt/Tokyo: European stocks rose to a 14-month high and Asian shares advanced after China said its economy grew faster than estimated so far this year. Emerging-market currencies strengthened and US Treasuries fell.
The Dow Jones Stoxx 600 Index added 0.4 per cent to 252.86 as of 12:10pm in Paris. The MSCI Asia Pacific Index climbed 0.7 per cent to 120.39, the highest level since December 14.
The won advanced against 14 of the most-traded currencies tracked by Bloomberg. Treasuries dropped before this week's $118 billion (Dh433 billion) auction of government debt.
China's economy, which is leading the world out of the first global recession since Second World War, grew faster than previously estimated, the government said.
The US will turn in its best performance since 2004 next year as spending picks up and companies increase investment, said Dean Maki, the most- accurate forecaster in a Bloomberg News survey.
Bottoming out
"The global economy is just about bottoming out," said Masaru Hamasaki, chief strategist at Tokyo-based Toyota Asset Management Co, which oversees the equivalent of $14 billion. "I don't expect huge economic growth, but I do see things recovering."
Germany's DAX Index climbed 0.7 per cent, as did France's CAC 40 Index. ArcelorMittal, the world's biggest steelmaker, and Boliden AB led European basic-resources companies higher as metal prices rose.
Seadrill, the drilling company founded by billionaire John Fredriksen, and Aker Solutions ASA gained as crude oil traded above $78 a barrel in New York.
The Shanghai Composite Index and Nikkei 225 Stock Average led the gains in the MSCI Asia Pacific Index. Hong Kong's Hang Seng Index fell 0.2 per cent, reversing gains of as much as 1 per cent, after property auctions raised less money than the lowest analyst estimates.
Standard & Poor's 500 Index futures, which were closed for trading on December 25, rose 0.2 per cent. The Shanghai Composite advanced 1.5 per cent to the highest since December 16, led by consumer stocks on the growth outlook.
And as the government increased price caps for rural purchases of home appliances. GD Midea Holding Co, China's second-biggest publicly traded appliance maker, climbed to a 19-month high.
