Beijing, Jan 18: European shares were higher Friday after a mixed session in Asia, as China reported that its economy grew at a 5% annual pace last year, hitting the government’s target but slowing from the year before.Germany’s DAX climbed 1% to 20,861.95, while the CAC 40 in Paris also gained 1% to 7,710.01. Britain’s FTSE 100 was up 1.1% to 8,482.66.
The futures for the S&;P 500 and the Dow Jones Industrial Average were up 0.3%.
Strong exports and policies aimed at spurring more consumer spending and investment helped drive a boom in manufacturing, which jumped nearly 6% from a year earlier, the Chinese government reported.
Share benchmarks in China showed scant reaction, given that the 5% annual growth exactly matched the government’s target for “about 5%” growth in 2024. The economy grew 5.4% year-on-year in the October-December quarter.
Economists are forecasting a further slowing of growth this year and beyond, and President-elect Donald Trump’s threats to raise US tariffs on Chinese goods have added to Beijing’s challenges as it faces a raft of moves by Washington to limit access to advanced technology, such as computer chips used in artificial intelligence.
Hong Kong’s Hang Seng index rose 0.3% to 19,584.06 and the Shanghai Composite index added 0.2% to 3,241.82.
In Tokyo, the Nikkei 225 index lost 0.3% to 38,451.46. Shares in gaming giant Nintendo dropped 4.3% in Tokyo as investors apparently were unimpressed by the company’s newest console, which gamers have been waiting for since rumours of its release first spread years ago. The company promised more details about the Switch 2 in April and said it will be released this year.
In South Korea, the Kospi shed 0.2% to 2,523.55. Australia’s S&P/ASX 200 edged 0.2% lower to 8,310.40.
Taiwan’s Taiex gained 0.5% after computer chip maker Taiwan Semiconductor Manufacturing Corp or TSMC reported Thursday that its profit in the last quarter jumped 57%. The world’s biggest semiconductor manufacturer — which has found itself in the middle of a trade and technology rift between the US and China — said it results were propelled by the artificial intelligence boom.