Asia stocks advance on Chinese GDP data; Nikkei up 0.37%
Investing.com
Published Jul 13, 2011 02:51AM ET
During late Asian trade, Hong Kong's Hang Seng Index climbed 0.9%, South Korea's Kospi Composite advanced 0.95%, while Japan’s Nikkei 225 Index edged 0.37% higher.
Earlier in the day, official data showed that China’s economy expanded at a rate of 9.5% in the second quarter of 2011, moderating slightly from growth of 9.7% in the preceding quarter and easing fears of an abrupt slowdown.
A separate report showed that industrial production rose by 15.1% in June, well above expectations for a 13.1% gain, while retail sales increased 17.7%, outstripping expectations for a rise of 17.0%.
Shares in the financial sector performed strongly amid speculation China may ease efforts to cool the economy. Shares in the nation’s largest lender Industrial and Commercial Bank of China jumped 2.5%, rivals China Construction Bank gained 2.2%, while Bank of China saw shares advance 2.6%.
Oil producers advanced broadly after crude oil prices rose above USD97 a barrel. PetroChina shares rose 1.1%, Sinopec gained 2.4%, while China Shenhua Energy climbed 2.7%.
In Japan, shares in trading houses were broadly higher after Credit Suisse upgraded the sector to ‘overweight’, citing low valuations.
Mitsubishi Corporation, Japan’s largest commodities trader, saw shares climb 1.8%, Itochu Corporation shares gained 2.6%, while Mitsui & Company, which Credit Suisse said was the most undervalued of Japan’s major trading houses, jumped 2.5%.
However, Japanese exporters with exposure to Europe traded lower, after ratings agency Moody’s downgraded Ireland’s sovereign debt rating to junk status. Sony shares declined 0.6%, digital camera maker Canon shed 0.7%, while Nissan slumped 1.4%.
The outlook for European stock markets was mixed. The EURO STOXX 50 futures pointed to a loss of 0.1%, France’s CAC 40 futures shed 0.4%, the FTSE 100 futures edged 0.1% higher, while Germany's DAX futures eased up 0.12%.
Later in the day, Federal Reserve Chairman Ben Bernanke was to give prepared testimony on monetary policy before lawmakers in Washington.
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