Global stocks rally, yuan surges as investors bet on China revival
Global stock markets rallied and China’s yuan posted its biggest gain since December on Monday as investors bet the Chinese economy would boost global growth even as surging coronavirus cases delayed business re-openings across the United States.
Data showing unexpected growth in the U.S. services sector last month, almost returning to its pre-pandemic levels, also helped drive Wall Street higher and lift Brent crude futures, the global benchmark for oil.
The Nasdaq set fresh all-time and closing highs, led by Amazon.com Inc as its shares crossed $3,000 for the first time. Tesla Inc jumped 13.5%, up 228% so far this year.
The yuan led commodity currencies higher against the dollar as investors lapped up risky assets on growing expectations of a strong economic rebound in China, where an index of blue-chip Chinese shares soared to a five-year high.
A Chinese economic revival bodes well for Australia and Europe, which count Beijing as their biggest trading partner.
The euro advanced 0.55% to $1.1310 and European shares jumped. The broad FTSEurofirst 300 index added 1.53% as stocks exposed to China – carmakers, industrials, energy firms and luxury goods makers – rose strongly. Banks also rallied.