Global stocks gain following reassurances from China on yuan

MANILA, Philippines (AP) — Global stocks rose Friday after China’s central bank governor pledged not to devalue the yuan for the sake of export competitiveness. But gains were limited as G-20 financial leaders meeting in Shanghai offered mixed messages over the potential for new stimulus to stave off the risk of recession.

KEEPING SCORE: In Europe, Germany’s DAX gained 1.5 percent to 9,468.55 and France’s CAC 40 rose 1.4 percent to 4,307.24. Britain’s FTSE 100 climbed 0.9 percent to 6,065.10, though shares in RBS slumped 8 percent after it posted an eighth consecutive annual loss. Dow futures and S& P futures were both up 0.4 percent.

CHINA CURRENCY: Zhou Xiaochuan, governor of China’s central bank, told a conference on the sidelines of a meeting of financial leaders of the Group of 20 industrial nations that Beijing would not engage in devaluations for the sake of its export competitiveness. Zhou urged that the gathering focus on managing lackluster global demand, structural economic reforms and promoting “sustainable and balanced” growth.

ANALYST VIEWPOINT: “Taken alongside Ministry of Finance proposals that China can afford a fiscal deficit of 4 percent of GDP, further stimulatory support does look forthcoming in 2016,” Angus Nicholson of IG said in a commentary. “However, Zhou Xiaochuan is unlikely to be able to abide by all his statements today, at least if we take them at face value.”

G-20 FINANCE AGENDA: Finance ministers and central bankers of the G-20 were seeking to douse hopes a two-day meeting in Shanghai that began Friday will produce specific growth plans similar to those rolled out in 2009 in response to the global crisis. Instead, many were urging faster progress on pro-growth structural reforms instead of relying on monetary and fiscal policy to boost growth.

ASIA’S DAY: Japan’s Nikkei 225 closed 0.3 percent higher to 16,188.41 while Hong Kong’s Hang Seng index rose 2.5 percent to 19, 364.15. Australia’s S&P/ASX 200 closed nearly flat at 4,880. The Shanghai Composite Index rose 1 percent to 2,767.21 after plunging 6.4 percent Thursday. South Korea’s Kospi rose 1.6 percent to 1,920.16. Markets in Southeast Asia rose and Taiwan was higher.

OIL: U.S. crude gained 35 cents to $33.42 a barrel in electronic trading on the New York Mercantile Exchange. It closed up 92 cents on Thursday. Brent crude oil, the global benchmark, rose 42 cents to $36.12 a barrel. On Thursday, it rose 63 cents.

CURRENCIES: The dollar rose to 112.83 yen from 112.30 in the previous day’s trading. The euro edge up to $1.1027 from $1.1020.