Stock markets in Asia and Europe rebounded on Wednesday after recent losses, driven by positive industrial data from China. The Hang Seng index in Hong Kong rose 0.7%, while China’s CSI advanced 0.2% following a two-day losing streak. In Europe, the Stoxx Europe 600 index edged 0.1% higher at the opening bell, boosted by gains in the tech and healthcare sectors after four consecutive days of losses. Industrial profits in China fell 11.7% year-on-year in the first eight months of 2023, suggesting that recent support measures are helping stabilize the country’s economy. Energy and industrial stocks drove the benchmark CSI 300 index higher, up 1.3% and 0.4% respectively. Oil prices also saw an increase due to strong economic data and supply cuts in major producing countries.
The positive performance of stock markets in Asia and Europe was driven by improved industrial data from China. This data showed a decrease of 11.7% in industrial profits year-on-year in the first eight months of 2023, compared to a larger contraction of 15.5% in the first seven months of the year. The smaller contraction suggests that recent support measures implemented may be helping to stabilize the second-largest economy in the world. As a result, the Hang Seng index in Hong Kong rose 0.7% and China’s CSI advanced 0.2% after a two-day losing streak. In Europe, the Stoxx Europe 600 index also saw a slight increase of 0.1% at the opening bell, with gains in the tech and healthcare sectors contributing to the positive performance.
Furthermore, energy and industrial stocks were among the driving forces behind the benchmark CSI 300 index’s 1.3% increase. Oil prices also experienced an upward trend, rising 30% since June, due to supply cuts by major producers. International benchmark Brent crude increased by 0.7% to $94.6, while West Texas Intermediate rose 1.1% to $91.35. Investors are now focusing on data regarding US durable goods orders, hoping to better assess the state of the economy more than a year after the Federal Reserve implemented its aggressive monetary tightening campaign. Economists expect a 0.5% month-on-month contraction for August, which would indicate an improvement from the previous month’s 5.2% contraction.