European markets closed sharply higher on Monday, following an advance in Asia. Shanghai and Hong Kong were closed for the Lunar New Year. U.S. markets remained closed Monday for Presidents Day.
The strong buying in Tokyo was driven by news that the Japanese economy grew at a nearly 13% annual pace in the last quarter, and by strong corporate earnings reports. It was the second straight quarter of growth after a downturn drastically worsened by the impact of the pandemic. Other Asian markets also saw strong gains. The Kospi in Seoul rose 1.5% to 3,147.00, and India’s Sensex climbed 1.1% to 54, 102.41. In Australia, the S&P/ASX 200 rose 0.9% to 6,868.90.
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