Asia report: Markets make gains despite disappointing China data
Markets in Asia started the week with gains across the board after their respective sessions on Monday, even as investors sifted through some disappointing data on China’s economy.
In Japan, the Nikkei 225 was up 0.26% at 20,719.33, as the yen strengthened 0.12% against the dollar to last trade at JPY 109.65.
The broader Topix index added 0.56% to close at 1,566.37 in Tokyo.
On the mainland, the Shanghai Composite was 0.56% firmer at 2,610.51, and the smaller, technology-heavy Shenzhen Composite was 0.61% higher at 1,330.17.
In fresh data out of Beijing on Monday, China’s economy grew 6.6% over 2018, which was in line with analyst forecasts but made for the slowest pace of annual growth in 28 years.
GDP growth in the fourth quarter was 6.4%, which also matched market expectations.
While data out of China has been closely watched in recent months as a gauge of how the world’s second-largest economy is weathering a trade war with the United States, some analysts in the region were quick to point out that it wasn’t necessarily all doom and gloom.
“Falling producer prices and new export orders point to a slowdown in China's growth momentum,” noted ANZ chief economist for Greater China, Raymond Yeung.
“To celebrate the 70th anniversary of the founding of the People's Republic of China in 2019, President Xi will still likely launch growth-supportive policies.”
South Korea’s Kospi eked out gains of 0.02% to 2,124.61, while the Hang Seng Index in Hong Kong rose 0.39% to close at 27,196.54.
Oil prices were higher as the region moved towards Tuesday, with Brent crude last up 0.48% at $63.00 per barrel, and West Texas Intermediate adding 0.42% to $54.27.
In Australia, the S&P/ASX 200 grew 0.18% to 5,890.40, while across the Tasman Sea, New Zealand’s S&P/NZX 50 gained 0.6% to end the session at 9,148.57.
Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.32% at AUD 1.40 and the Kiwi retreating 0.34% to NZD 1.4887.