Chinese consumer stocks rose in New York and the nation’s largest exchange-traded fund in the United States climbed to a two-week high after growth in the Asian country’s economy accelerated for the first time in two years.
Bloomberg News reported on Friday, that the iShares FTSE China 25 Index Fund increased by 0.5 per cent to $41.56 as of 12:25 p.m. in New York, set for the highest level since January 4.
The rally in the China-US gauge followed a 2.1 per cent jump in the benchmark for Chinese stocks traded in Hong Kong, after government data showed December retail sales and industrial production grew at the quickest pace in nine months.
The world’s second-largest economy expanded at a faster-than- estimated 7.9 per cent for the fourth quarter, up from a three- year low of 7.4 per cent in the previous period.
“The data confirmed improving consumer confidence we’ve found in China in the last three months and most figures came out a bit better than most people expected,” the president of Riedel Research Group Incorporated, Mr. David Riedel, said in a phone interview on Thursday, from San Francisco.
“Consumption-related stocks, including hotels and travel agencies should benefit and we expect the government to roll out more measures to encourage domestic consumption.”
The China-US Equity measure climbed by 0.3 per cent to 101.34, and was little changed for the week. The Standard & Poor’s 500 index retreated by 0.3 per cent to 1,477.11, halting a three-day rally, as data showed US consumer sentiment dropped and Intel Corporation reported a second straight quarter of declining sales.