NEW YORK, June 28 — Global stocks advanced yesterday as China’s growth reassurances and solid economic data in the United States helped reduce recession worries.

After Monday’s pullback in New York, Wall Street stocks won solid gains following a series of surprisingly upbeat updates on the world’s biggest economy.

US consumer confidence surged unexpectedly to an 18-month high in June, fuelled by an uptick in the outlook for family finances.

Meanwhile new home sales surged in May to reach the highest rate in over a year, while orders of big-ticket manufactured items rose again last month, fuelled by a sharp jump in orders for transportation equipment.

"There was a lot of US economic data released today and the key takeaway was that the economy is not breaking just yet,” said Oanda’s Edward Moya.

All three major US indices advanced, with the broad-based S&P 500 packing on 1.2 per cent.

"Today (was) a very strong indication that the bulls remain in control,” said Adam Sarhan of 50 Park Investments. "The market had every chance in the world to fall and instead it’s going up.”

Earlier, bourses in Asia were cheered by a forecast from Chinese Premier Li Qiang that the economy is on course to achieve its five per cent target for economic growth in 2023.

The world’s second-biggest economy is grappling with a slow recovery after emerging from Covid lockdowns.

In a fresh sign of optimism for China-US relations, reports said US Treasury Secretary Janet Yellen planned to meet her counterpart in Beijing next month.

The talks would follow Secretary of State Antony Blinken’s trip to the country, where he spoke to his opposite number and President Xi Jinping.

A summit between Xi and President Joe Biden has also been flagged.

US Federal Reserve Chair Jerome Powell is scheduled to speak at an annual central bank forum in Portugal today. His comments will be keenly followed by investors looking for additional indications about rate hikes.

The euro also got a boost from European Central Bank president Christine Lagarde, who said at the forum yesterday that it was "unlikely” policymakers could state soon when interest rates had peaked. She also pledged yet another hike in July for the eurozone.

Oil prices fell further, with tensions over the political situation in Russia and its potential impact on supply outweighed by concerns that further interest rate hikes could depress demand.

"Increased chatter over the potential for further interest rate rises, this time from ECB policymakers and higher recession risk is helping to keep a lid on prices,” said analyst Michael Hewson at CMC Markets. — AFP