The Shanghai Composite notched another big daily gain, but finished the week considerably lower
China's benchmark index
extended its positive momentum into a second consecutive session, with the Shanghai Composite rallying 4.8%. Traders cheered a reported round of equity purchases by the People's Bank of China (PBOC), and pension funds are also expected to start pouring cash into the stock market soon. Additionally,
a rebound in oil prices helped energy names claw back some gains. Nevertheless, mainland stocks finished a volatile week down nearly 8%.
Meanwhile, in Tokyo, a few big M&A deals propelled the Nikkei to a daily win of over 3%, with an upbeat report on retail sales also boosting sentiment. South Korea's Kospi stretched its winning streak into a fourth day, adding 1.6%, while Hong Kong's Hang Seng sat out the regional advance with a 1% pullback.
Traders in Europe are taking a cautious approach, with equities modestly lower at midday. Luxury retailers, in particular, are taking it on the chin after a poorly received earnings report from Hermes. At last check, the German DAX and London's FTSE 100 are each down 0.6%, and the French CAC 40 has shed 0.4%.
