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Asia stocks broadly higher after China GDP data; Nikkei jumps 2%

Published 10/18/2012, 03:41 AM
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Investing.com - Asian stock markets were broadly higher on Thursday, as market sentiment improved after official data showed that China’s economy grew in line with market expectations, easing fears over a deeper-than-expected slowdown in the world’s second largest economy.

During late Asian trade, Hong Kong's Hang Seng Index rose 0.6% Australia’s S&P/ASX200 ended up 0.7%, while Japan’s Nikkei 225 Index rallied 2%.

Official data released earlier showed that China’s economy expanded at an annualized rate of 7.4% in the third quarter, broadly in line with market expectations.

Other key China reports, including retail sales and industrial output figures also beat forecasts, easing fears over a ‘hard landing’ in the world’s second largest economy.

The data came one day after a report showing that U.S. housing starts rose by 15% in September, the fastest pace since July 2008, adding to hopes that the U.S. economic recovery is gaining momentum.

The U.S. and China are crucial markets for the region's exporters.

Commodity-linked shares led gains in Hong Kong, as the upbeat Chinese data lifted raw material prices, boosting the earnings outlook for miners and energy explorers.

Aluminum Corporation of China, or CHALCO, saw shares gain 2.3%, Jiangxi Copper Company saw shares climb 3%, while oil giant PetroChina saw shares rise 1.6%.

Elsewhere, in Japan, the Nikkei jumped to a three-week high on the back of strong gains in exporters, which rose as the yen weakened against the U.S. dollar and the euro.

A weaker yen increases the value of overseas income at Japanese companies when repatriated, boosting the outlook for export earnings.

Shares in consumer electronic firms Toshiba and Sony jumped 1.8% and 2.8% respectively, while automakers Toyota and Honda rose 2.45% and 3% apiece.

Shares in Japan found further support after the Nikkei reported that the Bank of Japan may introduce more monetary-easing moves at its next policy meeting.

Meanwhile, in Australia, the benchmark ASX/200 Index closed just below a 15-month high, as gains in miners supported the market, amid easing concerns over a slowdown in demand from China.

BHP Billiton saw shares rise 3.3%, while Rio Tinto and Fortescue Metals Group advanced 4.8% and 2.7% respectively.

In Europe, regional markets were mildly lower after the open, as investors were looking ahead to the start of a two-day European Union summit later Thursday, although no major announcements on Spain or Greece were expected.

The EURO STOXX 50 shed 0.35%, France’s CAC 40 dipped 0.3%, London’s FTSE 100 eased down 0.1%, while Germany's DAX declined 0.1%.

Later in the day, the U.S. was to publish its weekly report in initial jobless claims, as well as data on manufacturing activity in Philadelphia.

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