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STORY: Fast Retailing reported a 16% jump in first-half profit on Thursday (April 13), and lifted its full-year outlook.

The Japanese retailer saw signs of recovery in China and strong sales growth in Europe and North America.

Uniqlo is a key firm to watch for investors wanting to measure retail performance in China.

That's because the company has around 900 stores in the country, making China Fast Retailing's biggest foreign market.

The positive results add to growing evidence Chinese consumer spending is recovering from health crisis lockdowns.

Fast Retailing's update follows a strong performance by LVMH.

The luxury group reported first-quarter sales double analyst expectations, largely due to demand in China.

Uniqlo said it saw a big drop in first-quarter revenue and profit in mainland China.

But its operations began to recover in January, which led to a sharp rise in second-quarter profit in the country.

But results weren't as positive in its Japanese home market.

Profit slipped almost 2% even as revenue climbed, as a weaker yen currency raised the cost of sales.

Group operating profit hit $1.65 billion in the six months through February - up from a year before.

Fast Retailing raised its forecast for full-year profit to $2.7 billion.