FTSE 100 hits a new high thanks to Japan's GDP upgrade and Chinese export figures

The FTSE 100 index hit a fresh five-year high today as Japan’s upgraded GDP figures and expectation-beating Chinese exports bolstered confidence in the global economic recovery.

The Footsie rose 15.04 points to 6454.20, its highest since January 2008. Investors piled into London blue-chips as Japan said its GDP expanded 0.2% between October and December. A preliminary estimate for the three months had suggested the economy shrank by 0.4%. The revision, based on higher than initially reported corporate spending and household consumption, suggests new premier Shinzo Abe is leading Japan out of recession.

Tokyo stocks rose strongly in response, back to levels seen before the collapse of Lehman Brothers. The Nikkei Stock Average added 315.54 points, or 2.6%, to 12,283.62, its highest close since September 10, 2008. Figures from China showing exports rose more than expected in February buoyed investors further. Shipments from China jumped 21.8% during the month compared with the same time a year earlier, boosted by strong demand from the US and South-east Asia. Analysts had expected only a 15% rise.