World stocks rise on vaccine hopes and EM currencies’ charge

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A struggling dollar kept the hot streaks for the euro as the yen nudged higher ahead of Yoshihide Suga taking over the reins in Japan

London — World stocks rose on Tuesday on the back of upbeat Chinese data and optimism about coronavirus vaccines, as a struggling dollar kept the hot streaks for the euro and some of the biggest emerging-market currencies sizzling.

“Strong external demand, a further recovery from the pandemic and pent-up demand from the floods all contributed to the robust activity data in August,” Ting Lu, chief China economist at Nomura, said in a note to clients. “We expect a further, albeit gradual, recovery of the services sector, a steady improvement in retail sales and elevated fixed-asset investment growth.”

With the yuan leading the charge, MSCI’s emerging-market forex index also climbed to a near seven-month high.Overnight, MSCI’s broadest index of Asia-Pacific shares excluding Japan had added 0.5%, for a fourth straight day of gains that hoisted it up 3% for the year after reversing its coronavirus plunge.

 

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