Asian stocks rise despite weak Chinese data


(RTTNews) – Asian stocks ended broadly higher on Monday as investors reacted to economic data from the United States, China and Japan.

Positive US economic data released late last week eased concerns about the world’s largest economy.

Weak Chinese data added to concerns about slowing growth, overshadowing a surprise rate cut by the country’s central bank.

Japanese GDP rose in the three months to June, but growth was weaker than market expectations.

China’s Shanghai index fluctuated before ending slightly lower for the day as weak industrial production, retail sales and capital investment data raised concerns about slowing growth.

Earlier in the day, China’s central bank cut one-year and seven-day lending rates by 10 basis points in a surprise move to boost demand.

Hong Kong’s Hang Seng index ended down 0.67% at 20,040.86 on fears of a slowdown in China.

Japan’s Nikkei index rebounded 1.14% to end at 28,871.78 after upbeat earnings from retail companies. The broader Topix index ended up 0.60% at 1,984.96.

Government data showed Japan’s GDP grew at an annualized rate of 2.2% in the second quarter of this year, below the median estimate of 2.6%.

Among the top gainers, Pan Pacific International Holdings jumped 11.5% and Sundrug 10.8%. Daiichi Sankyo climbed 14.5% after the pharmaceutical company won a dispute over cancer treatment technology.

Indian and South Korean markets were closed for the holidays.

Australian markets rose as investors awaited key corporate earnings and the release of minutes from the Reserve Bank of Australia’s August meeting scheduled for Tuesday.

The benchmark S&P/ASX 200 rose 0.45% to 7,064.30 while the broader All Ordinaries index gained 0.5% to end at 7,324.90.

Core Lithium climbed almost 10% after releasing an update on its exploration activities. Steelmaker BlueScope Steel rose 3.9% after its annual profit beat estimates.

Mining heavyweight BHP Group and biotech firm CSL both edged higher while gas producer Santos fell 1.1% ahead of their expected results this week.

Across the Tasman, New Zealand’s benchmark S&P/NZX 50 index rose 0.5% to 11,789.03 ahead of the Reserve Bank of New Zealand’s policy meeting on Wednesday as investors swarmed expecting a fourth straight half-point rate hike.

New Zealand’s services sector grew at a slower pace in July, the latest BusinessNZ survey revealed today with a Services Performance Index of 51.2, down from 55.4 in June.

US stocks rallied on Friday to deliver a fourth straight week of gains as moderating inflation is expected to help the Fed pull off a soft landing for the economy.

A measure of US consumer confidence improved much more than expected in August and one-year inflation expectations fell to their lowest level since February, adding to optimism about the economy.

The Dow Jones gained 1.3%, the tech-heavy Nasdaq Composite jumped 2.1% and the S&P 500 added 1.7% to new three-month closing highs.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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