Hong Kong and Shanghai stock markets soared again Friday with the latter index recording its strongest weekly gain in 16 years on hopes China would unveil yet more measures to boost its flagging economy. In foreign exchange, the yen rallied against the dollar after Japan's ruling party elected a new leader, Shigeru Ishiba, who backs interest-rate hikes. Europe's main stock markets were on course to end the week with solid gains -- as the luxury and car sectors continued to benefit from hopes of rebounding Chinese demand.
Investors waited to see if Wall Street would reach more record highs as focus switches to key US inflation data later in the day. Gold, which this week hit all-time heights as the dollar weakened on the prospect of more cuts to US interest rates, cooled Friday. Oil prices edged higher after suffering some heavy losses this week.
"Having been one of the most unloved parts of the investment market for several years, investors have raced to buy Chinese shares in a blockbuster week for Asian markets," noted Russ Mould, investment director at AJ Bell. "A veritable feast of economic stimulus measures has led investors to take a more optimistic view of the earnings potential for Chinese companies and foreign ones selling into the country. "Lower borrowing costs, smaller deposits for buying homes and more capacity for banks to lend money -- these lay the foundations for greater economic activity among businesses and consumers," Mould added.
The Hong Kong and Shanghai.