European stocks maintained their early gains on Friday, with Germany's DAX 40 and the pan-European STOXX 600 The Shanghai Composite gained 0.79% to close at 3,230 while the Shenzhen Component jumped 1.5% to 10,998 on Friday, rising for the second straight session and tracking global peers higher as sentiment improved after US lawmakers passed a bill to raise the debt ceiling.
Domestically, hopes for further policy support also buoyed mainland stocks as mixed economic data in China pointed to an uneven post-pandemic recovery. New energy and consumer-related stocks led the charge, with strong gains from Contemporary Amperex (2.4%), Tianqi Lithium (5.4%), Longi Green Energy (2.2%), Kweichow Moutai (2.2%) and Wuliangye Yibin (2.8%). AI-related and other technology stocks also advanced, including iFLYEK (1.3%), and Kunlun Tech (1.1%).
The S&P/TSX Composite index advanced almost 1.8% to close at the 20,000 mark on Friday, extending gains from the previous session and tracking the strong session for US equities as investors welcomed mixed data from the US labor market. While the unemployment rate rose well above expectations and wage growth slowed, non-farm payrolls surpassed market forecasts and lifted North American bond yields. Energy stocks led the gains and advanced 2.8%, while banks and industrials shares added 2.1% each. Policy-sensitive tech shares and cannabis producers also booked gains. On the other hand, gold miners traded under pressure amid lower gold prices. In corporate news, Suncor Energy was up nearly 3% after announcing 1,500 planned job cuts by the end of the year. On the week, the S&P/TSX was slightly up by 0.3%.
The Dow Jones closed 700 points or 2.1% higher on Friday while the S&P 500 added 1.4%, reached its highest level since August 2022 and the Nasdaq topped its April 2022 highs gaining 1%. Investors welcomed a mixed payrolls report showing hotter-than-expected payrolls white an unexpected rise in unemployment and a slowdown in annual wage growth. The data could influence the Fed's decision to maintain the Fed funds rate steady this month, as they may seek more clarity on the state of the economy. However, there has been a slight increase in the likelihood of a 25bps hike occurring this month. Meanwhile, the passage of the Fiscal Responsibility Act in the Senate also lifted investors' moods. On the corporate front, shares of Lululemon jumped 11.3%, after the company lifted its full-year outlook. Week to date, the Dow added 2.4% while the S&P 500 and the Nasdaq gained 2.6% and 3.4%, respectively.
The Shanghai Composite gained 0.79% to close at 3,230 while the Shenzhen Component jumped 1.5% to 10,998 on Friday, rising for the second straight session and tracking global peers higher as sentiment improved after US lawmakers passed a bill to raise the debt ceiling. Domestically, hopes for further policy support also buoyed mainland stocks as mixed economic data in China pointed to an uneven post-pandemic recovery. New energy and consumer-related stocks led the charge, with strong gains from Contemporary Amperex (2.4%), Tianqi Lithium (5.4%), Longi Green Energy (2.2%), Kweichow Moutai (2.2%) and Wuliangye Yibin (2.8%). AI-related and other technology stocks also advanced, including iFLYEK (1.3%), and Kunlun Tech (1.1%).
The BSE Sensex closed 120 points higher at 62,550 on Friday, recovering just enough to notch a flat reading on the week as the US Congress's approval of the debt ceiling deal and dovish signals from Fed officials supported equity benchmark worldwide. Indian stocks also continued to benefit from the dovish outlook from the RBI as domestic inflation slows. Metallurgists led the gains in Mumbai, driven by a 2% jump for Tata Steel shares as hopes of stronger demand in China lifted base metal prices. Gains were also prevalent among major automobile producers, with Mahindra & Mahindra and Maruti Suzuki both advancing nearly 2%.
The Nikkei 225 Index jumped 1.31% to 31,556 while the broader Topix Index rallied 1.55% to 2,183 on Friday, closing at their highest levels in over three decades and tracking gains on Wall Street overnight as the Fiscal Responsibility Act was passed by US lawmakers, allaying fears of a potential default and removing a source of uncertainty in the markets. Japanese stocks have outperformed global peers since May on strong domestic earnings and a weak yen, while market enthusiasm over artificial intelligence and related technologies provided additional boost. Notable gains were seen from index heavyweights such as Toyota Motor (3.4%), Rakuten Group (1.9%), Nintendo (1.6%), Daikin Industries (3.4%), Sony Group (1%) and Panasonic Holdings (4.2%). Elsewhere, SoftBank Group rallied 4.3% amid the investing giant's exposure to semiconductor and AI-related companies.
