World stock markets bounced back Friday as upbeat US economic data helped shake off worries about future increases in US interest rates. The Conference Board index of leading indicators, a measure of US economic health, rose in February by the largest amount in three months, suggesting growth should bounce back following a harsh winter. Separately, US applications for unemployment benefits rose to near pre-recession levels, suggesting a stable job market in the world’s largest economy. The numbers helped to perk up stocks after Federal Reserve chief Janet Yellen unsettled investors by suggesting earlier this week that US interest rates could rise sooner than markets were anticipating. In Europe, Germany’s DAX rose 0.5 per cent to close at 9,342.94 and France’s CAC 40 rose 0.2 per cent to 4,335.28. Britain’s FTSE 100 ended 0.2 per cent higher at 6,557.17. In the US, the Dow was up 0.6 per cent at 16,428.96 and the broader S&P 500 was up 0.4 per cent at 1,880.04. Trading in Asia was subdued as Japanese markets were closed for a public holiday. South Korea’s Kospi rose 0.8 per cent to close at 1,934.94 and Hong Kong’s Hang Seng gained 1.2 per cent to finish at 21,436.70. Australia’s S&P/ASX 200 rose 0.8 per cent to 5,338.10. \ In mainland China, the Shanghai Composite Index advanced 2.7 per cent to 2,047.62 as the yuan remained weak. China’s currency was trading at 6.2245, the lowest in about 13 months. A recent loosening of exchange rate controls has helped speed the currency’s decline, which could give a boost to the export-reliant economy. Analysts believe authorities are trying to clamp down on frothy credit growth and discourage speculators as for the past several years the yuan has slowly appreciated in value. But Rabobank’s Every said the weakening yuan also shows that people are scrambling to get their money out of China and the outgoing tide could roil the Chinese financial system. In currencies, the euro rose 0.1 per cent to $1.3786 while the dollar dipped 0.1 per cent to 102.31 Japanese yen. Oil prices fell amid concerns that sanctions on Russia might eventually touch the energy market. Benchmark crude oil for May delivery was down 99 cents to $99.38 in electronic trading on the New York Mercantile Exchange. The contract fell 27 cents on Thursday. Russian stocks tumble MOSCOW: Russian stocks tumbled Friday as another credit rating agency put the country on notice of a possible downgrade and Visa and MasterCard stopped serving two Russian banks, a day after the US ordered economic sanctions against two dozen people from President Vladimir Putin’s entourage. Fears over Russia’s economic outlook have ratcheted up this week after Russian President Vladimir Putin signed the treaty to annex Crimea following Sunday’s hastily called referendum which overwhelmingly supported that move. The West considers the vote illegitimate. US President Barack Obama on Thursday ordered economic sanctions against nearly two dozen members of Putin’s inner circle and a major Russian bank that provides them support.
