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Asia stocks higher after China GDP data; Nikkei jumps 1.05%

Published 01/17/2012, 02:46 AM
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Investing.com - Asian stock markets were broadly higher on Tuesday, as market sentiment improved after official data showed that China’s economy slowed-less-than-expected in the fourth quarter, easing fears over the global economic outlook.

During late Asian trade, Hong Kong's Hang Seng Index rallied 2.9% Australia’s S&P/ASX200 jumped 1.65%, while Japan’s Nikkei 225 Index gained 1.05%.

Official data released earlier showed that China’s economy expanded at an annualized rate of 8.9% in the fourth quarter, topping expectations for growth of 8.8%.

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.

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 rally 7.55%, Jiangxi Copper Company saw shares surge 7.9%, while oil giants Sinopec and PetroChina saw shares jump 4.5% and 2.7% respectively.

Financial also contributed to gains, amid growing expectations for near-term easing measures by Beijing. Insurance giant Ping An saw shares climb 6.85%, Industrial and Commercial Bank of China shares gained 4.1%, while China Construction Bank shares added 3.15%.

Elsewhere, in Japan, the Nikkei bounced off a four-week low as markets largely shrugged off Standard & Poor’s decision to downgrade the triple-A rating of the euro zone’s bailout fund, the European Financial Stability Facility, by one notch late Monday.

Shares in the financial sector performed strongly, tracking their global counterparts higher.

Japanese investment bank heavyweights Nomura Holdings and Daiwa Securities, which both have large exposure to European sovereign debt, rose 1.65% and 0.9% respectively, while the nation’s largest lender Mitsubishi UFJ Financial Group climbed 1.25%.

Looking ahead, the outlook for European stock markets was sharply higher. The EURO STOXX 50 futures pointed to a strong gain of 1.5%, France’s CAC 40 futures rose 1.35%, London’s FTSE 100 futures advanced 1.15%, while Germany's DAX futures pointed to a gain of 1.4%.

Later in the day, the euro zone was to produce a report on the German ZEW economic sentiment index, as well as official data on consumer price inflation, while the U.S. was to produce a report on manufacturing activity in New York State.

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