Chinese stocks performed better on Friday, with the Shanghai Composite Index .SSEC closing 0.3 percent higher, bringing this week’s gain to 5.9 percent – the largest since early June.
The CSI300 index .CSI300 Shanghai and Shenzhen dipped 0.1 percent, however it posted a weekly gain of 4.3 percent.
China’s surprise devaluation of the yuan sent shockwaves through the markets. The currency sunk for three consecutive days, before holding its own against the dollar on Friday.
“Yuan devaluation suddenly became a concern for stock investors earlier this week, but now this issue is fading out of their radar,” Qi Yifeng, an analyst at consultancy CEBM, told Reuters.
Uncertainty surrounding China and Greece has taken a hit of economic growth in Europe too, with the IMF cutting its forecast for global growth last month due to the crises.
Gross domestic product in the region rose 0.3 percent according to date released today, below the 0.4 percent forecast by economists. Germany’s economy grew 0.4 percent, lower than the 0.5% expected by Bloomberg, Italy’s 0.2 percent, and France stagnated for the first time.
However, Spain’s economy expanded 1 percent, the fastest pace in more than eight years and Greece reported a GDP rise of 0.8 percent after imposing capital controls.
