China announced additional economic stimulus measures on Thursday, causing markets in Asia and Europe to rally for the second time this week. The Shanghai index gained 3.61% and Hong Kong’s Hang Seng index jumped 4.16% after Beijing unveiled plans for cash handouts to the poor and a reported $140 billion injection into the largest state-run banks. In Japan, the Nikkei 225 surged 2.79%, led by semiconductor industry stocks Disco and Tokyo Electron, following better-than-expected earnings from U.S. chip giant Micron Technology Inc.
European stocks also rose on Thursday morning, energized by the new China stimulus. The tech and mining sectors led the way, while luxury brands LVMH and Hermes were both up around 6% in early trading. However, H&M shares dropped 3.6% after the company said it would miss a key profitability target.
china stimulus elevates global indices
The STOXX Europe 600 was up 1.17% in early trading. In U.S. pre-market trading, all three major indexes rose as investors digested the China stimulus news and Micron’s better-than-expected quarterly report.
The chip company’s shares were up more than 15% in pre-market trading. On Wednesday, the Dow dropped 0.7% and the S&P 500 lost 0.19%, while the tech-heavy Nasdaq added a barely perceptible 0.04%, as investors waited to see what Federal Reserve chair Jerome Powell would say in upcoming statements. Separately, shares of video game publisher Ubisoft plunged 17% after the company’s latest releases in the Assassin’s Creed and Star Wars franchises failed to meet market expectations.
The disappointing performance has raised concerns among investors about Ubisoft’s ability to maintain its competitive edge in the rapidly evolving gaming industry.
