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Asian markets mostly up after positive China data
HONG KONG, April 17, 2019 (BSS/AFP) – Asian markets mostly rose Wednesday
as data showed China’s economy grew more than expected in the first three
months of the year, adding to a broadly upbeat mood on trading floors.
Beijing said the world’s number two economy and a key driver of global
growth expanded 6.4 percent in January-March, the same as the previous
quarter but better than forecast by analysts in an AFP poll.
The data follows a number of readings indicating stability in China, with
factory activity, exports, new loans and inflation all improving — tempering
concerns about a slowdown that could have a major impact on the world
economy.
There were also better-than-expected increases in factory output, retail
sales and investment.
Observers put the uptick down to government stimulus including huge tax
cuts and measures to make it easier for banks to lend.
“Overall, this confirms that China’s economic growth is bottoming out and
this momentum is likely to continue going into months ahead with (a) recent
surge in credit growth and a possible agreement between the US and China on
trade issues,” said Tai Hui, chief market strategist for Asia-Pacific at JP
Morgan Asset Management.
“From Beijing’s perspective, this set of data should show that the policy
reset in mid-2018 from de-leverage to growth support is starting to yield
results.”
Shanghai rose 0.2 percent, Hong Kong was flat, Tokyo went into the break
0.3 percent higher, while Singapore gained 0.6 percent, with Wellington,
Taipei and Manila all up.
The gains come after a strong run-up this year, which has been fuelled by
growing optimism that China and the United States will hammer out a deal to
end their long-running trade war that blighted markets at the end of 2018.
However, Sydney eased 0.2 percent and Seoul slipped 0.1 percent.
Investors had been given a positive lead by Wall Street, where investors
cheered another round of healthy earnings that have raised hopes for the rest
of the reporting season.
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Forex traders took the opportunity to push into higher-yielding, riskier
assets.
The dollar dipped against the euro and pound as well as the Australian
dollar, Mexican peso and South African rand, among others.
But it was up against the Japanese yen, which is considered the safe bet
in times of turmoil.
On oil markets the commodity extended Tuesday’s gains after an industry
group reported a surprise decline in US stockpiles while OPEC-led output cuts
and US sanctions on Iran and Venezuela kept a supply glut in check.
– Key figures around 0230 GMT –
Tokyo – Nikkei 225: UP 0.3 percent at 22,289.32 (break)
Hong Kong – Hang Seng: FLAT at 30,123.30
Shanghai – Composite: UP 0.2 percent at 3,258.78
Pound/dollar: DOWN at $1.3049 from $1.3048 at 2100 GMT
Euro/pound: UP at 86.60 pence from 86.45 pence
Euro/dollar: UP at $1.1300 from $1.1281
Dollar/yen: UP at 112.09 yen from 112.00 yen
Oil – West Texas Intermediate: UP 46 cents at $64.51 per barrel
Oil – Brent Crude: UP 25 cents at $71.97 per barrel
New York – Dow: UP 0.3 percent at 26,452.66 (close)
London – FTSE 100: UP 0.4 percent at 7,469.92 (close)
BSS/AFP/HR/0900