Japan and China markets rally on positive economic data

Stock markets in Japan and China rose after positive economic data from major global economies. Japan’s economy grew faster than expected in the second quarter, and China showed signs of stabilization, like slower drops in home prices and better retail sales.

This good news followed a positive day on Wall Street and helped boost investor confidence, especially after last week’s losses. European and US futures also climbed.

In the US, inflation data showed a slowdown in price increases, which raised expectations that the Federal Reserve might cut interest rates soon. Traders are betting on a rate cut in September and more by the end of the year.

Australian stocks also went up, while Taiwan’s fell. Markets in South Korea and India were closed for the holidays. Tech stocks in Hong Kong, like Tencent, dragged down regional gains despite good earnings.

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In other news, Michael Burry, known for predicting the 2008 financial crisis, increased his investment in Alibaba. Meanwhile, US Treasury yields rose slightly, and the dollar strengthened.

Some experts think China may still need more economic stimulus to hit its growth targets, as some data shows a decline in bank loans, suggesting a lack of confidence in the economy.

Japan also faces some uncertainty after Prime Minister Fumio Kishida decided not to run for his party’s leadership again, which could create political instability.

Oil prices bounced back after recent declines, and gold prices slightly increased.