Global Stock Markets Surge Amid China's Stimulus and Fed's Easing

A global stock index reached new heights after China introduced fresh economic stimulus measures. Concurrently, U.S. Treasury yields dropped amidst anticipations of a significant rate cut by the Federal Reserve. Several major global stock indexes, including the S&P 500 and Dow Jones, displayed mixed performances through late afternoon trading.

A global stock index hit a record high on Friday following China's stimulus boost, while Treasury yields dipped as U.S. inflation data heightened expectations of a substantial interest rate cut at the Federal Reserve's November meeting.

The S&P 500 was slightly lower in late afternoon trading. The yen firmed against the dollar after Japan's former Defense Minister Shigeru Ishiba appeared set to become the next prime minister.

The personal consumption expenditures price index, the Fed's favored inflation gauge, rose 0.1% in August, aligning with forecasts. The PCE price index increased 2.2% over the 12 months through August. The U.S. rate futures market now predicts around 80 basis points in policy easing over the next two meetings.

The Fed began its latest easing cycle on Sept. 18 with a 50 basis point rate cut, which saw the yield on U.S. 10-year notes fall to 3.747%. U.S.-listed shares of Chinese companies surged on Beijing's latest stimulus measures to boost the domestic economy.

Europe's STOXX 600 index and the MSCI global stock index both closed at record highs. China's blue chips had their best weekly rise since November 2008.

China's central bank lowered interest rates and injected liquidity into the banking system. Japan's Ishiba, a critic of past monetary stimulus, narrowly won the ruling party's leadership contest.

The dollar index fell 0.19%, with the dollar weakening against the yen. Aluminium prices hit a 16-week high, and U.S. crude oil edged up to $68.18 a barrel.

(Additional reporting by Chuck Mikolajczak in New York; Editing by Kim Coghill, Kirsten Donovan, and Richard Chang)

(With inputs from agencies.)