Why Alibaba (BABA) Stock Is Climbing Today

July 15 - Shares of Alibaba BABA surged about 6% on Tuesday, marking their strongest performance in over three years, after data showed China's economy expanded 5.2% in the quarter ended June 30. The gain outpaced peers on Wall Street and pushed the stock to session highs near $115 .

The National Bureau of Statistics reported gross domestic product rose 5.2% year?on?year in Q2, slightly above expectations of 5.1%. Retail sales grew just 4.8%, below the 5% forecast, underscoring lingering consumer caution despite broader resilience.

Now they are waiting till the meeting of the Politburo in late July to see some fresh policy support. Analysts believe that Beijing might implement some forms of selective easing (specifically, increase infrastructure expenditure and consumer subsidies) instead of initiating the general stimulus in the second half, as a means of propping up the property market and labour market.

Although monetary policies such as recent rate cuts and issuing of liquidity by the central banks have been implemented already, there is still shopper restraint in an extended real estate slump. Alibaba stock has been strong thanks to the sentiment that any policy increment alone will support the consumption and the stock in turn has the potential to further rally in a complicated economic environment.