Asian stock markets displayed a positive sentiment as they responded to stronger-than-expected Chinese economic activity, providing a boost to investor confidence across the region.
In Tokyo, the Nikkei index closed at an impressive 33,533.09 points, marking a gain of 364.99 points or +1.10%. This surge came as investors eased concerns about the global economic outlook following robust economic data from both the United States and China.
Australia’s stock market also witnessed significant gains, with the S&P/ASX 200 closing at 7,289.60 points, up by 103.10 points or +1.43%, and the All Ordinaries closing at 7,490.70 points, an increase of 108.00 points or +1.46%. These impressive gains were driven by China, Australia’s major trading partner, which released economic data exceeding expectations.
In South Korea, the Composite (KOSPI) reached a noteworthy high of 2,601.28 points, rising by 28.39 points or +1.1%. This surge to its highest level in over a month reflects the latest US inflation data, which suggested that the Federal Reserve (Fed) may halt its interest rate hikes. Additionally, better-than-expected Chinese economic data further instilled confidence among investors. However, the South Korean won weakened against the US dollar amid these developments.
Conversely, the Chinese stock market in Shanghai experienced a slight decline, closing at 3,117.74 points, down 8.81 points or -0.28%. This dip was attributed to profit-taking after an initial morning surge in response to robust Chinese economic data. Furthermore, investor concerns persisted regarding the ongoing real estate crisis in China, with indicators such as new home prices, investment, and real estate sales showing declines. This situation has underscored the need for the Chinese government to provide additional support.
In Hong Kong, the Hang Seng index closed positively at 18,182.89 points, recording an increase of 134.97 points or +0.75%. This surge followed China’s release of stronger-than-expected economic data, fostering optimism among investors regarding the potential stabilization of the Chinese economy after a period of stagnation.
These developments in Asian stock markets highlight the significant impact of economic data on investor sentiment. Strong Chinese economic indicators, combined with global economic factors, have played a pivotal role in driving these market movements. Nonetheless, concerns related to the Chinese real estate sector continue to warrant close attention, as they could influence future market dynamics.