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Asian markets rally on strong global data; Nikkei up 2.87%

Published 08/23/2013, 01:14 AM
Updated 08/23/2013, 01:15 AM
USD/JPY
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Investing.com - Asian stocks soared Friday as traders bid up equities in the region amid a spate of impressive data points out of the U.S. and Europe Thursday.

In Asian trading Friday, Japan’s Nikkei 225 jumped 2.87% as USD/JPY traded higher. Data points out of the U.S. Thursday supported the notion that the Federal Reserve could move to taper its bond-buying program.

Hong Kong’s Hang Seng added 0.53% while the Shanghai Composite rose 0.30%. Hong Kong stocks are still facing a weekly loss on concerns Fed tapering will further damage already fragile emerging markets currencies, bonds and equities.

A day after a decent flash PMI out of China, Deutsche Bank raised its second-half growth forecast for the world’s second-largest economy to 7.7% from 7.6%.

On Thursday, London-based Markit Economics reported earlier that its flash euro zone manufacturing purchasing managers’ index rose to 51.3 in August from a final reading of 50.3 in July. Analysts were expecting the index to come in at 50.8.

The flash euro zone services PMI rose to a 24-month high of 51.0 from 49.8 in July, better than market calls for a 50.2 reading.

The numbers are crucial for the Chinese economy because the European Union is a prime market for Chinese exports.

Australia's S&P/ASX 200 gained 1.2% amid the risk on traded that bolstered higher-beta sectors. New Zealand’s NZSE 50 was the regional laggard as it inched down 0.03%.

In U.S. economic news out Thursday, initial claims for jobless benefits fell by 15,000 to 320,000 last week. That is the lowest reading since October 2007, according to the U.S. Labor Department. Economists expected a reading of 335,000. The less volatile four-week moving average fell 4,000 to 332,000, the lowest level since November 2007.

The Conference Board’s index of leading economic indicators rose 0.6% last month after being flat in June. Eight of the ten indicators that comprise the index improved last month, including employment, improved equity markets, loan growth and building permits.

South Korea’s Kospi jumped 1.41% while Singapore’s Straits Times Index rose 0.30%. S&P 500 futures added 0.15% a day after the benchmark U.S. index advanced 0.86%.


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