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Asia stocks rise after China CPI data; Nikkei ends up 2.6%

Published 07/09/2013, 02:45 AM
USD/JPY
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Investing.com - Asian stock markets were mostly higher on Tuesday, after data showed that inflation in China accelerated at a faster rate than expected last month.

During late Asian trade, Hong Kong's Hang Seng Index added 0.4%, Australia’s ASX/200 Index ended 1.5% higher, while Japan’s Nikkei 225 Index closed up 2.6%.

Official data released earlier showed that consumer prices in China rose 2.7% in June from a year earlier, above expectations for a 2.5% increase and accelerating from a 2.1% rate of increase in May.

The faster-than-expected increase in the rate of inflation dampened hopes policy makers in Beijing could introduce fresh easing measures to boost economic growth in the world’s second largest economy.

Market players now looked ahead to key trade data out of China for further clues regarding the health of the global economy.

In Hong Kong, the Hang Seng edged higher as property developers and financial sector stocks rebounded from the previous session’s losses following the CPI data.

China Resources Land saw shares climb 2%, while Sino Land tacked on 2.2%.

Meanwhile, in Tokyo, the Nikkei rallied to hit a seven-week high as the U.S. yen weakened against the U.S. dollar, boosting exporters.

USD/JPY rose to hit a session high of 101.28, moving off the previous session’s low of 100.75. A weaker yen increases the value of overseas income at Japanese companies when repatriated, improving the outlook for export earnings.

Toyota and Honda saw shares rally 2.6% and 2.3% respectively, while Sony added 2.4%.

Japanese megabanks were also higher, with shares in the nation’s largest lender Mitsubishi UFJ Financial Group climbing 2.5%, while Sumitomo Mitsui Financial Group and Mizuho Financial Group advanced 2.3% and 2.9% respectively.

Elsewhere, in Australia, the benchmark ASX/200 Index ended at a four-week high as the big four banks all rose.

National Australia Bank shares jumped 1.9%, while ANZ Banking Group and Westpac Banking Group advanced 1.9% and 2.2%. Commonwealth Banking Group tacked on 1.7%.

Alumina saw shares gain 3% after U.S. aluminum giant Alcoa reported better than expected first quarter earnings after Monday’s closing bell on Wall Street.

Looking ahead, European stock market futures pointed to a higher open.

The EURO STOXX 50 futures pointed to a gain of 0.6% at the open, France’s CAC 40 futures rose 0.5%, London’s FTSE 100 futures eased up 0.5%, while Germany's DAX futures pointed to a gain of 0.6% at the open.

Finance ministers from the European Union were to hold talks in Brussels later Tuesday.

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