Japanese stocks led a rally in Asia on Monday, after solid U.S. data and earnings calmed tumult in global financial markets and reassured investors worried about the health of the world economy.
The Thomson Reuters/University of Michigan index of consumer sentiment was surprisingly strong in early October, rising to more than a seven-year high. Other data also showed new housing starts rose more than expected last month, suggesting U.S. economic growth was solid. The upbeat U.S. data has brought some calm to markets after a week of turbulence as signs of softening global growth roiled investors and sent volatility spiking.
MSCI’s broadest index of Asia-Pacific shares outside Japan surged 1.3 percent, while Japan’s Nikkei stock average jumped about 3.4 percent, on track to post the biggest daily rise in more than a year and retaking some of the 5 percent it shed in the previous week.