World stocks bask in growth hopes after Mideast tensions subside

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The world's shares hit a record high on Friday as a relief over de-escalation of U.S.-Iranian tensions quickly prompted investors to bet on faster ...

TOKYO: World shares hit a record high on Friday as relief over the de-escalation of U.S.-Iranian tensions prompted investors to bet on faster global growth, especially in the technology sector.

Japan's Nikkei rose 0.44per cent while Chinese shares slid a little but stood not far from their eight-month peaks. Investors welcomed the report as a prelude to the upcoming visit by China's Vice Premier Liu He, head of the country's negotiation team in Sino-U.S. trade talks, to Washington next week to sign a trade deal with the United States.

"Unless we have external shocks such as resurgence of U.S.-China trade tensions or a war in the Middle East, it is hard to see the U.S. economy falling apart," said Hiroshi Watanabe, senior economist at Sony Financial Holdings. Waning worries about all-out war in the Middle East pushed down gold, safe-harbor currencies and oil.

 

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