Generally we see Stock Markets as the mirror of an economy.But sometimes, it is ex[experienced that stock market shows an upward trend in an economy where recessionary trends are there.Let us explore,what may be the reasons for such phenomenon.
Depends on your applied school of economic thought.
Some non-academic views should also be noted:
http://www.bentamari.com/
With scientific reference to the economic theory of dynamic systems (e.g. chaos and stock market research), we have to consider the manipulative influence of monetary agency, especially the hidden interplay of central and commercial banking, in terms of statistical fiat creations and real economic productivity, i.e. tech-know-logical progress leads to economic growth and not the nominal growth of the total monetary volume.
The stock market is often in the news, but it has been remarked that not everyone has stock. In fact, wealth distribution is very highly skewed. Some say that the rich are job creators, but I've heard the idea that often the richest only compete with their peers for rank regarding wealth.
It would then seem apparent that those who control the wealth may not really be directly interested in economic growth. The tie between the stock market and economic growth is not a direct one, and in the short term, there may be effectively no tie at all. Perhaps an overheated stock market might even precede an economic collapse. In the US there is almost no unemployment, but many may hold more than one job just to try to pay their bills, living relatively modestly here. Others work long hours with relatively low pay. As I said, wealth is badly distributed, especially for unearned income. And unearned income for the retired is not usually made with automated trades done in microseconds to just skim the wealth out of the stock market.
If wealth is hoarded, how can the economy grow? ... So no, a growing stock market is not always a strong sign of a growing economy, apparently.
[I'm not a financial expert, nor an economist, by the way, but a statistician who was with a statistical agency producing official energy statistics. But I have read Paul Krugman in the New York Times and paid attention to the news.]
Macro-economic factors such as interest rates, inflation, unemployment and economic growth often move stock markets. Stock markets are always rooting for more economic growth, because it usually means more profits for companies, and more profits tend to grow the value of stocks.
However, to answer your question, there could be different market expectations, manipulation, intervention, gov. rules etc.
An upward trend in the stock market even when the economy of the country do not show any sign of growth is probably evidence of market manipulation.