Country data boosts world stocks, commodities as oil price jumps

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October 16, 2017 1:58 PM

Oil prices also jumped, pushed up as Iraqi forces entered the oil city of Kirkuk, taking territory from Kurdish fighters.

World stocks and commodities rose on Monday, boosted by upbeat Chinese data, while U.S. oil futures jumped to a near six-month high as escalating tensions between the Iraqi government and Kurdish forces threatened supply.

Asian shares rallied to a decade-high after figures showed China’s producer prices beat market expectations to rise 6.9 per cent in September from a year earlier.

Copper hit three-year highs. Prices of iron ore and coke, key ingredients in steel-making, jumped with Dalian iron ore futures, rising 2.5 per cent to a 2-1/2 week high while coke for January delivery gained 1.6 per cent.

U.S. crude rose 1.3 per cent to 52.16 dollars a barrel not far from 52.85 dollars touched late last month – a level not seen since April. Brent crude climbed 1.4 percent to 57.94 dollars per barrel.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained for a fifth day running to its highest level since late 2007.

Japan’s Nikkei climbed for a sixth day to a level not seen since November 1996. Australian shares extended their winning streak to a fourth straight session to rise 0.6 percent, while South Korea’s stock index set a new record.

Upbeat data from China came before the Communist Party Congress on Wednesday and third-quarter economic data on Thursday.

“Ahead of China’s Congress, it is helpful that we have reassuring numbers from China,” said Victoria Clarke, economist at Investec in London.

“There were concerns about weaker economic growth.”

The IMF had last week upgraded its global economic growth forecast for 2017 by 0.1 percentage points to 3.6 per cent and to 3.7 per cent for 2018 from its April and July outlook, driven by a pickup in trade, investment, and consumer confidence.

Forecasts for the euro zone, Japan, China, emerging market Europe and Russia were all revised upwards.

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