Stocks rise to record as China fuels global growth

A trader watches an electronic share price display at the Doha Stock Exchange in Doha May 28, 2015. (Reuters file photo)

SYDNEY -- Stocks headed toward a fresh all-time high as economic momentum in China boosted optimism for global growth.

The MSCI All Country World Index was higher for a seventh day after data showed China’s economy maintained its momentum last quarter, enhancing the allure of stocks after soft US consumer price data reinforced the need for gradual policy tightening from American central bankers. The Shanghai Composite Index pared an earlier slide triggered by concern that policies to reduce leverage in Asia’s biggest economy will curb earnings. The kiwi sank after the deputy governor of New Zealand’s central bank said a lower currency would help rebalance growth.

Data showed Asia’s largest economy expanded 6.9% in the second quarter from a year earlier, matching the previous period and exceeding the 6.8% median estimate in a Bloomberg survey. That comes fresh on the heels of weak US retail sales and inflation figures. Earnings season ramps up this week with Microsoft Corp. and Unilever among those scheduled to report results.

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