Asian Markets Mostly Up After Positive China Data
Faizan Hashmi 2 days ago Wed 17th April 2019 | 08:20 AM
Hong Kong, (UrduPoint / Pakistan Point News - 17th Apr, 2019 ) :Asian markets mostly rose Wednesday as data showed China's economy grew more than expected in the first three months of the year, adding to a broadly upbeat mood on trading floors.
Beijing said the world's number two economy and a key driver of global growth expanded 6.4 percent in January-March, the same as the previous quarter but better than forecast by analysts in an AFP poll.
The data follows a number of readings indicating stability in China, with factory activity, exports, new loans and inflation all improving -- tempering concerns about a slowdown that could have a major impact on the world economy.
There were also better-than-expected increases in factory output, retail sales and investment.
Observers put the uptick down to government stimulus including huge tax cuts and measures to make it easier for banks to lend.
"Overall, this confirms that China's economic growth is bottoming out and this momentum is likely to continue going into months ahead with (a) recent surge in credit growth and a possible agreement between the US and China on trade issues," said Tai Hui, chief market strategist for Asia-Pacific at JP Morgan Asset Management.
The gains come after a strong run-up this year, which has been fuelled by growing optimism that China and the United States will hammer out a deal to end their long-running trade war that blighted markets at the end of 2018.
Investors had been given a positive lead by Wall Street, where investors cheered another round of healthy earnings that have raised hopes for the rest of the reporting season.
Forex traders took the opportunity to push into higher-yielding, riskier assets.
But it was up against the Japanese Yen, which is considered the safe bet in times of turmoil.
On oil markets the commodity extended Tuesday's gains after an industry group reported a surprise decline in US stockpiles while OPEC-led output cuts and US sanctions on Iran and Venezuela kept a supply glut in check.