Asian stock markets closed on a positive note as robust Chinese economic data surpassed expectations, buoying investor sentiment and easing concerns about the global economic outlook.
Tokyo’s Nikkei marked its most significant gain this year, closing at 33,519.70 points, a notable surge of 823.77 points or +2.52%. This surge followed the release of lower-than-expected US inflation figures, hinting at potential support for the US Federal Reserve (Fed) to halt its interest rate hikes.
Australia’s S&P/ASX 200 and All Ordinaries also soared, both reaching their highest levels in eight weeks. The S&P/ASX 200 closed at 7,105.90 points, up 99.20 points or +1.42%, while the All Ordinaries closed at 7,316.70 points, marking a gain of 109.60 points or +1.52%. The slowdown in US inflation has led the market to anticipate a potential end to the Fed’s interest rate hikes.
South Korea’s Composite (KOSPI) experienced a positive closure at 2,486.67 points, up 53.42 points or +2.2%, fueled by weaker US inflation data. This outcome heightened expectations of the Fed refraining from further interest rate increases, resulting in significant strengthening of the South Korean won against the US dollar.
China’s Shanghai Composite saw an upward trajectory, closing at 3,072.83 points, up 16.76 points or +0.55%. The positive response was attributed to reports indicating stronger-than-anticipated Chinese retail sales and industrial production, alleviating investor concerns about the country’s economic outlook.
Hong Kong’s Hang Seng joined the rally, closing at 18,079.00 points, reflecting a substantial increase of 682.14 points or +3.92%. The market’s optimism stemmed from expectations of the Fed concluding its cycle of interest rate hikes, driven by the deceleration in US inflation. Additionally, robust reports on Chinese retail sales and industrial production further contributed to investors’ confidence in China’s economic resilience.