TOKYO – Asian shares extended a global rally after upbeat US economic data calmed sentiment shaken by days of turmoil in Chinese equities.
Wall Street rose sharply overnight thanks to revised US gross domestic product data showing the economy grew faster than initially thought in the second quarter ? a reassuring sign amid worries over deepening economic woes in China.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.7 per cent, but was still poised to lose 0.4 per cent for the week in which it logged three-year lows as plunging Chinese shares sent financial markets into a tailspin.
On Thursday, the S&P 500 .SPX recovered about half of its 11 per cent drop over six days.
The improved mood drove Japan’s Nikkei stock index up 2.4 per cent, though it was still down more than 2 per cent for the week.
Crude oil futures edged down, after a short-covering rally in the previous session sent both US crude and Brent rocketing more than 10 per cent each, their biggest one-day gains since 2008. Oil had plunged to 6-1/2-year lows earlier this week.
US crude CLc1 inched down about 0.1 per cent wh�ile Brent crude LCOc1 was down about 0.4 per cent.
Besides the upbeat US GDP, last week’s jobless claims fell more than expected.
That kept alive speculation that the Federal Reserve could raise interest rates this year if the economic momentum continues.
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