World stocks advance amid hopes for China economy, US job market; dollar continues to slide

World markets climb amid upbeat China data

HONG KONG — World stock markets pushed higher Friday as stronger-than-expected data about China’s economy and the U.S. job market added to optimism about the global recovery.

European markets climbed in early trade, oil prices hovered around $72 and the dollar continued its slide against major currencies like the yen and euro.

Most Asian markets closed up, with Shanghai’s index jumping over 2 percent, after China said industrial output, investment, loans and retail sales remained strong in the world’s third-largest economy last month with the help of colossal stimulus measures.

Together, the figures showed China’s fast-growing economy was keeping up its momentum despite still-lackluster exports as Western demand continues to flag. The news also eased investor worries that the government was moving to restrict the surge in bank lending that’s been behind this year’s growth and stock market and property boom.

“There’s still a lot of momentum in China’s economy,” said Kelvin Lau, regional economist at Standard Chartered Bank in Hong Kong. “Going forward the question will be whether they can achieve a more balanced and stable recovery.”

Also helping the markets were overnight gains on Wall Street after a drop in weekly U.S. unemployment claims helped allay concerns about consumer spending in the world’s largest economy.

In Europe, Britain’s FTSE 100 added 0.5 percent, Germany’s DAX rose 0.4 percent and France’s CAC-40 advanced 0.7 percent.

In China, the Shanghai index surged 64.91 points, or 2.2 percent, to 2,989.79. Hong Kong’s Hang Seng rose 91.86 points, or 0.4 percent, to 21,161.42.

Elsewhere, South Korea’s Kospi climbed 0.4 percent and Australia’s benchmark gained 0.6 percent.

Japan’s market, however, bucked the upward trend as the dollar continued to lose ground against the yen, feeding worries the country’s huge exporters might take a hit when converting back their overseas revenues and profits. New figures indicating the economy grew at a weaker pace than initially estimated in the second quarter didn’t help matters.

The Nikkei 225 stock average lost 69.34 points, or 0.7 percent, to 10,444.33.

U.S. futures pointed to a lackluster open on Wall Street Friday. Dow futures were up 2 points at 9,607 while S&P futures gained 9.2, or 0.9 percent, to 1,041.70.

The dollar sank to 91.01 yen from 91.72 yen. The euro traded higher at $1.4586 from $1.4574.

Early in the day, the suffering greenback lent support to oil prices, which are priced in dollars, as did a drop in U.S. crude inventories, which suggested demand may be picking up. But crude gave up its gains late in Asia trade, and the benchmark contract traded down 28 cents at $71.65 a barrel. The contract rose 63 cents overnight.

Overnight in the U.S., the Dow rose 80.26, or 0.8 percent, to 9,627.48 for its highest close since Oct. 6, when it ended at 9,956. The index is up 3.7 percent in five days.

The broader S&P 500 index rose 10.77, or 1 percent, to 1,044.14. The Nasdaq composite index rose 23.63, or 1.2 percent, to 2,084.02.