Investing.com - Asian stocks rose on Thursday after Chinese Premier Wen Jiabao said cooling inflation rates give the country room to roll out economic stimulus measures to spur more robust growth.
During Asian trading on Thursday, Hong Kong's Hang Seng Index was up 0.18%, Australia's S&P/ASX200 was up 0.65%, while Japan’s Nikkei 225 Index was up 1.43%.
Cooling growth rates in China have sparked concerns the global economy may be waning but many economists have said China has plenty of room to loosen monetary policy and enact other stimulus measures.
News that China may act sent stocks rising, as investors eagerly looked away from U.S. markets and their many mixed signals.
U.S. industrial production outpaced expectations in July, climbing 0.6%, above forecasts for a 0.5% increase.
However, the Federal Reserve Bank of New York said earlier that its general business conditions index fell by 13.2 points to -5.8 in August from a reading of 7.4 in July.
Markets were expecting a 6.5 reading, which suggested that many American business owners remain uncertain over the country's future and are keeping capital spending and hiring at bay.
Inflation, meanwhile, did remain at bay last month.
Government data revealed that the U.S. consumer price index came in unchanged in July for the second consecutive month, compared to expectations for a 0.2% monthly rise, while core consumer prices, which exclude food and energy prices, rose 0.1%, less than the expected 0.2% increase.
The figures, however, came right in the heels of a U.S. Commerce Department report that retail sales jumped 0.8% in July after a 0.7% drop in June, shooting way past market expectations for a 0.3% increase.
It was the first gain in four months.
Core retail sales, which exclude automobiles, rose 0.8% in July, well above market calls for a 0.4% increase and up from a 0.8% decline in June.
A separate report showed that U.S. producer prices rose at their fastest clip in five months in July, climbing 0.3% after a 0.1% increase the previous month.
Markets were expecting a 0.2% increase.
Yields in U.S. government bond markets have been rising, a sign investors may be leaving the safety of the U.S. Treasury in search of risk.
Until recently, markets were in general agreement that the Federal Reserve will stimulate the world's largest economy, which would send stock prices rising, though attitudes are changing.
However, that attitude may be changing.
Investors have been selling greenbacks and snapping up stocks in anticipation of Fed action, and stock indices may have risen to the point that the Fed will hold off intervening on the notion that anticipatory stock buying has stimulated the economy in the same way actual intervention would.
In Hong Kong, top gainers included Tencent, up 4.39%, Hutchison, up 1.28%, and CHALCO, up 1.20%.
In Australia, top gainers included Challenger, up 6.55%, Linc Energy, up 6.09%, and Bathurst Resources, up 5.41%.
European stock futures indicated a higher opening.
France's CAC 40 futures pointed to a gain of 0.35%, while Germany's DAX 30 futures pointed to a gain of 0.27%. Meanwhile in the U.K., FTSE 100 futures indicated a gain of 0.20%.
Dow Jones Industrial Average futures were up 0.18% while the S&P 500 futures were up 0.19%.
Later Thursday, the U.S. will unveil data on building permits and housing starts, key gauges for the construction and housing sectors, as well as weekly government data on unemployment claims.
The country is also to release a report on manufacturing activity in the Philadelphia area.
During Asian trading on Thursday, Hong Kong's Hang Seng Index was up 0.18%, Australia's S&P/ASX200 was up 0.65%, while Japan’s Nikkei 225 Index was up 1.43%.
Cooling growth rates in China have sparked concerns the global economy may be waning but many economists have said China has plenty of room to loosen monetary policy and enact other stimulus measures.
News that China may act sent stocks rising, as investors eagerly looked away from U.S. markets and their many mixed signals.
U.S. industrial production outpaced expectations in July, climbing 0.6%, above forecasts for a 0.5% increase.
However, the Federal Reserve Bank of New York said earlier that its general business conditions index fell by 13.2 points to -5.8 in August from a reading of 7.4 in July.
Markets were expecting a 6.5 reading, which suggested that many American business owners remain uncertain over the country's future and are keeping capital spending and hiring at bay.
Inflation, meanwhile, did remain at bay last month.
Government data revealed that the U.S. consumer price index came in unchanged in July for the second consecutive month, compared to expectations for a 0.2% monthly rise, while core consumer prices, which exclude food and energy prices, rose 0.1%, less than the expected 0.2% increase.
The figures, however, came right in the heels of a U.S. Commerce Department report that retail sales jumped 0.8% in July after a 0.7% drop in June, shooting way past market expectations for a 0.3% increase.
It was the first gain in four months.
Core retail sales, which exclude automobiles, rose 0.8% in July, well above market calls for a 0.4% increase and up from a 0.8% decline in June.
A separate report showed that U.S. producer prices rose at their fastest clip in five months in July, climbing 0.3% after a 0.1% increase the previous month.
Markets were expecting a 0.2% increase.
Yields in U.S. government bond markets have been rising, a sign investors may be leaving the safety of the U.S. Treasury in search of risk.
Until recently, markets were in general agreement that the Federal Reserve will stimulate the world's largest economy, which would send stock prices rising, though attitudes are changing.
However, that attitude may be changing.
Investors have been selling greenbacks and snapping up stocks in anticipation of Fed action, and stock indices may have risen to the point that the Fed will hold off intervening on the notion that anticipatory stock buying has stimulated the economy in the same way actual intervention would.
In Hong Kong, top gainers included Tencent, up 4.39%, Hutchison, up 1.28%, and CHALCO, up 1.20%.
In Australia, top gainers included Challenger, up 6.55%, Linc Energy, up 6.09%, and Bathurst Resources, up 5.41%.
European stock futures indicated a higher opening.
France's CAC 40 futures pointed to a gain of 0.35%, while Germany's DAX 30 futures pointed to a gain of 0.27%. Meanwhile in the U.K., FTSE 100 futures indicated a gain of 0.20%.
Dow Jones Industrial Average futures were up 0.18% while the S&P 500 futures were up 0.19%.
Later Thursday, the U.S. will unveil data on building permits and housing starts, key gauges for the construction and housing sectors, as well as weekly government data on unemployment claims.
The country is also to release a report on manufacturing activity in the Philadelphia area.