Investors chased for recently battered stocks on tracking firmer opening of European bourses and positive US index futures. The Stoxx Europe 600 Index added 0.5% to 285.09 at opening trade Friday in London. Dow Jones Industrial Average up 0.5%, while S&P 500 futures and Nasdaq 100 futures advanced 0.6%
Gains in the regional markets were lead by china's Shanghai Composite Index that ended up 2.1% at 2244.64, which translated into gains on Hong Kong's Hang Seng Index, which shot up 2.3% to 22013.57, snapping a five-day losing streak.
Sharp gains in the world second largest economy propelled today after the ministry data indicated China's foreign direct investment (FDI) inflows reversed the longest streak of annual declines in the first quarter, as a mild but steady recovery in the economy helped bolster global investor confidence. The figures also showed that investment was focused more on advanced manufacturing industries and the service sector, in line with the government's broader goal of moving up the global value chain and shaking off its tag as the world's factory.
China drew $29.9 billion in foreign direct investment in the first three months, up 1.4% from a year earlier. The rise put an end to persistently negative year-to-date growth since early 2012 and was mainly driven by investment from U.S. and European companies,
Buying activities in the Chinese bourses rejuvenated further on media reports saying regulators are studying plans that would allow A-shares to be added to international well-known indexes to lure overseas funds. There's market speculation that MSCI Inc. is contacting relevant departments about adding A-shares to the MSCI Emerging Markets Index.
Australian market also made a comeback with the S&P ASX 200 recorded just a moderate increase of 0.2% to 4931.90, with strength in bullion, resources and energy shares were mostly offset losses in financials and property trusts.
Japanese stocks ended higher after indecisive trading early in the session, with the Nikkei up 0.7% to 13316.48. The index moved higher after Japanese finance minister Taro Aso, who is attending a Group of 20 meeting of finance ministers in Washington, reassured the market that the Bank of Japan's recently launched monetary policies were not under attack at the summit.
Taiwan's benchmark Taiex rose 1.8%, on the back of sharp gains in heavyweight Taiwan Semiconductor Manufacturing Co. thanks to upbeat forecasts. Taiwan Semiconductor, the world's largest contract maker of chips, rallied 6.6% in Taipei, leading the biggest gain in technology stocks in two months.
Elsewhere, South Korea's Kospi Composite ended up 0.4% at 1906.75. Markets in India and Vietnam are shut for a holiday.
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