Asia: Stocks rise after Chinese inflation, Japan consumer confidence data
Asian stocks advanced as tensions eased in Ukraine and reports showed Japan's consumer confidence rose slightly and Chinese inflation was in line with expectations.
Japan's Nikkei 225 rose 2.38% while Hong Kong's Hang Seng index gained 1.29% and the Shanghai Composite advanced 1.38%.
Russia's Defence Ministry on Friday said it had returned its armed forces to their bases following military exercises near Ukraine's border.
Interfax reported that troops and planes had ended drills held at the Ashuluk firing range in the Astrakhan region.
A 72-hour ceasefire in Gaza also helped sentiment after mediation by Egypt over the weekend. The truce follows heavy fighting between Hamas and Israel over the past month, which has led to the deaths of over 2,000 people.
However, tensions in Iraq will continue to be watched closely by the markets this week after the US ordered airstrikes to protect American military personnel and Yazidi refugees against Sunni militants.
Meanwhile, Japan's consumer confidence index climbed to 41.5 in July from 41.1 a month earlier. However, economists had forecast a reading of 42.
China inflation remained at an annual 2.3% in July, as predicted by analysts, signalling that the People's Bank of China (PBOC) may have more room for more easing to boost the recovery of the world's second largest economy.
The central bank is targeting inflation of 3.5% by year end.
"The bulls may argue that this creates some headroom for policy to remain loose," said Deutsche Bank analyst Jim Reid.
"However, a front page article by the China Securities Journal overnight said that monetary policy loosening in the second half may not be as strong as the first half though liquidity may still remain 'relatively loose' and lowering financing costs and preventing financial systemic risks are the PBOC's two main goals."
Mitsui Mining, Sunac China
Mitsui Mining & Smelting Co. rallied in Tokyo after raising its full-year profit forecast 14% to 17.1bn yen.
Sunac China Holdings surged in Hong Kong, following reports first-tier city Shenzhen plans to make small adjustments to property policies and scrap limits on home prices.
Malaysian Airlines jumped after sovereign wealth fund Khazanah Nasional Bhd. offered to take the carrier private.
Treasury Wine Estates edged higher in Sydney after US buyout firm TPG Capital offered A$3.4bn for the world's second-biggest listed winemaker.
RD