Oil prices jump, as China data lift stocks higher

Emerging market stocks edged higher yesterday, but currencies struggled for direction after manufacturing data painted a mixed picture for developing economies while the prospect of rising oil prices and a weaker dollar provided some support.

Data from China showed manufacturing in the world’s second- largest economy grew more than expected in November because of government building projects and a housing boom.

The mood was still being buoyed, though, by gains of nearly 10 per cent in oil prices after OPEC agreed its first output cut since 2008.

“China’s Purchasing Manager Index coming in stronger than expected is a key one - China has such a huge impact on emerging markets, it affects general risk sentiment, and when things look okay in China it boosts confidence in the rest of emerging markets,” said Per Hammarlund, strategist at SEB.