European and Asian Markets Rally as China Growth Boosts Confidence

European shares surged this week, bolstered by lower bond yields, strong Chinese growth figures, and positive earnings reports. While China and most Asia-Pacific markets climbed, Japan lagged as speculation grew over a possible interest rate hike. Meanwhile, U.S. markets experienced slight declines amid robust earnings.

European markets experienced a notable surge on Friday, heading towards their most significant weekly increase since September. The boost was spurred by falling bond yields, bullish Chinese growth figures, and optimistic earnings that fueled investor confidence in riskier assets.

China's encouraging economic data provided a lift to most Asia-Pacific shares. However, Japanese markets underperformed as the yen surged, fueled by increasing expectations of an interest rate hike by the Bank of Japan next week. The dollar regained some ground after its steep decline on Thursday, amid renewed speculation of a Federal Reserve rate cut by June.

Consistent with the upward trend, Britain's FTSE 100 and Germany's DAX achieved intraday record highs. Meanwhile, markets in the U.S. and Asia saw mixed performances, as traders focused on strong corporate earnings at the start of the reporting season. Bond yields showed declines, offering support to alternative assets like Bitcoin and gold.

(With inputs from agencies.)