Asia: Stocks rally as investors put concerns over US growth behind them

Asian stocks rallied on Thursday, putting concerns about economic growth in the US beyond them, helped by a recovery in commodities.

US markets declined on Wednesday, as weak economic data and a disappointing ADP report fuelled worries over the growth in the world’s largest economy.

Japan’s Nikkei Stock Average rose 1.46% to 19,255.32, reversing a 0.9% decline in the previous session, while the yen was stable against the dollar.

Japanese industrial data showed a flat performance despite increased exports which indicated that business sentiment is not keeping up with the soft economic recovery.

“Companies in Japan are apprehensive about the staying power of a weak Yen,” said Augustin Eden, research analyst at Accendo Markets.

Meanwhile, a Bank of Japan survey showed that large businesses plan to spend 1.2% less on capital investment in the current financial year compared with their 2014 plans, going against expectations for a slight increase.

In company news, Sony Corp rose 3.12% following a settlement between its US videogame unit and the Federal Trade Commission over false-advertising claims related to its PS Vita console.

On Wednesday, car maker Nissan Motor reported annual sales had declined 3% but that did not prevent shares from rising 2.04% on Thursday, while sector peer Toyota Motor Corp climbed 1.71%

Hong Kong’s Hang Seng Index rose 0.77% despite a decline in the HSBC Hong Kong purchasing managers’ index, which fell to 49.6 in March from a one-year high of 50.7 in the previous month.

Telecom giant PCCW jumped 4.59% after its subsidiary Hong Kong Television Entertainment was granted a 12-year free-to-air license from the local government.

Real estate developer Country Garden Holdings rose 4.79% after announcing it would issue new shares to major Chinese insurer Ping An Insurance Group for HK$6.3bn (£549.4m).

In mainland China, the Shanghai Composite Index edged forward 0.41% after gaining 24% since early February as margin trading surpassed 1trn yuan (£108.1bn) for the first time.

Australia’s S&P/ASX 200 rose 0.64% but a report from the Australian Bureau of Statistics showed the country’s seasonally adjusted trade deficit came in at A$1.3bn (£667.7m) in February, compared with a A$1bn deficit in January.

The figure was in line with economists’ expectations but some believe it could lead to a cut in interest rates by Australia’s central bank.

“This has in turn increased the odds of a Reserve Bank of Australia interest rate cut next week,” said Eden.