Global equities rally 28.1% since April low, led by Japan and Europe

Published 01/09/2025, 11:42
© Reuters.

Investing.com - The MSCI AC World Index gained 2.4% in August, driven by robust earnings, rate cut expectations, and ongoing AI investment themes, according to Bank of America analysis.

Global equities have rallied 28.1% since reaching a cycle low on April 8, with Japan and Europe leading regional returns at 6.9% and 3.2% respectively, while the U.S. market rose 1.8% during August.

Tech Hardware and Materials emerged as the top-performing global sectors in August, rising 8.3% and 6.9% respectively, while Software and Utilities underperformed with returns of -3.8% and -0.6%.

Japan dominated region-sector performance in August, with Japan Telecom (19.0%), Japan Energy (14.7%), and Japan Utilities (14.2%) delivering the strongest returns, while Japan Semiconductors (-6.3%), Europe Software (-5.7%), and Asia Pacific excluding Japan Healthcare (-5.4%) lagged.

Banks have emerged as the leading global sector year-to-date in 2025 with a 26.6% return, boosted by a 57.6% rally in European Banks, followed by Telecom (24.3%) and Semiconductor (23.0%), while Healthcare (2.3%), Tech Hardware (2.4%), and Consumer Discretionary (5.0%) have posted the weakest performances.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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