Chinese stocks on track for best week since 2008 after Beijing stimulus – business live

UK stocks have opened a touch higher, following further strong gains in Asia and on Wall Street, where the S&P 500 hit a fresh high.

Stocks were boosted by relief that weekly US jobless claims came in better than expected and second-quarter GDP growth held firm at 3%.

The FTSE 100 index in London edged up by 0.1% to 8,299 while the French and Italian markets rose by 0.3%, and Germany and Spain were flat.

Richard Hunter, head of markets at interactive investor, said

Global markets are set to end September on a sparkling note, with the Chinese authorities finally stepping up to the plate and with the main US indices continuing to test new record highs.

Derren Nathan, head of equity research at Hargreaves Lansdown, said:

Semiconductor stocks rallied led by US memory chip maker Micron’s surge of 14.7% [last night] after it released revenue guidance above market forecasts. This saw the optimism spread eastwards with Korean rivals Samsung and SK Hynix also seeing strong gains, topping off a strong week for Asian equities where a stimulus blitz unveiled by China’s government and central bank has seen Chinese equities enjoy their best week in over 15 years.

It’s been quite the come back with September almost completely reversing the double-digit losses endured over the previous 12 months. Only time will tell if this monetary experiment will see China return to its long-term growth trajectory.

In Japan, it’s been confirmed that Shigeru Ishiba will become the next prime minister after a nail-biting contest for the leadership of the ruling Liberal Democratic Party. The Nikkei index jumped by 2.3%, and Nathan said “market confidence is no bad omen for the new man at the helm”.

Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.

Chinese stocks are on track for their best week since 2008, after a blitz of stimulus measures aimed at the faltering economy.

The CSI 300 index rose by 3.5% today and is heading for a weekly gain of around 15%. Hong Kong’s Hang Seng index gained 2.7% and is on track for a near-13% weekly rise, its biggest since 1998.

An index of mainland Chinese property stocks is up 20% this week, and metal prices also rallied, including iron ore, copper, gold and silver. Investors are betting that the stimulus, which included interest rate cuts and support for the property market, will revive the latter and the wider economy.

After today, Chinese markets will be closed for a week-long public holiday.

Tin Lu, chief China economist at Nomura, said:

Beijing seems finally determined to roll out its bazooka stimulus in rapid succession… Beijing’s recognition of the severe situation of the economy and lack of success in a piecemeal approach should be valued by markets.

But eventually it is still necessary for Beijing to introduce well-thought policies to address many of the deep-rooted problems, particularly regarding how to stabilise the property sector, which is now in its fourth year of contraction.

The Japanese yen fell by 1% to three-week lows amid a leadership contest in the country. It has just been announced that former defence minister Shigeru Ishiba won the race to lead Japan’s ruling Liberal Democratic Party and will replace the prime minister, Fumio Kishida, as the country’s next leader.

The Agenda:

• 7.45am BST: France inflation for September

• 8.55am BST: Germany unemployment for September

• 10am BST: Eurozone consumer sentiment final for September

• 11am BST: UK CBI Retail sales for September

• 1.30pm BST US Spending for August with PCE price index

• 3pm BST: US Michigan consumer sentiment final for September