Asia report: Markets finish higher after raft of data from China
Markets in Asia were higher across the board on Friday, as investors digested the latest data on China’s economy.
In Japan, the Nikkei 225 was up 0.14% at 29,683.37, as the yen strengthened 0.07% against the dollar to last trade at JPY 108.81.
Technology conglomerate SoftBank Group was down 0.69%, while among the benchmark’s other major components, automation specialist Fanuc was up 0.31% and fashion firm Fast Retailing was 0.48% higher.
The broader Topix index was 0.09% firmer by the end of the trading day, settling at 1,960.87.
On the mainland, the Shanghai Composite gained 0.81% to 3,426.62, and the smaller, technology-heavy Shenzhen Composite rose 0.62% to 2,220.22.
Fresh data out of Beijing showed China’s economy growing in the first quarter, with gross domestic product 18.3% higher year-on-year for the three months to 31 March.
That was slightly lower than the 19% pencilled in by analysts polled by Reuters.
Retail sales, meanwhile, rocketed 34.2% in March, beating forecasts for growth of 28%, while industrial production growth came in at 14.1%, missing the 17.2% estimated in the Reuters poll.
“An overnight data surge out of China provided a fresh insight into just how the Asian powerhouse continues to lead the world out of the pandemic,” said IG senior market analyst Joshua Mahony.
“Much of the reason behind today’s incredible 18.3% GDP reading is the basing effect that comes as the first quarter is compared with the now-historic first three months of 2020.
“However, there is no doubt that China has led the world in both suppressing the virus and stimulating their economy to outperform throughout this pandemic.”
Mahony said a significant part of China’s outperformance came from the country’s reliance on manufacturing, which had been the benefactor of stimulus in a world of service sector lockdowns.
“However, while the Chinese recovery story has been led by manufacturing, the huge 34.2% retail sales figure does highlight how consumer activity has also been a key component of the country’s impressive year.”
South Korea’s Kospi was 0.13% higher at 3,198.62, while the Hang Seng Index in Hong Kong rose 0.61% to 28,969.71.
The blue-chip technology stocks were mixed in Seoul, with Samsung Electronics down 0.24%, and SK Hynix flat.
Oil prices were higher as the region entered the weekend, with Brent crude last up 0.4% at $67.21 per barrel, and West Texas Intermediate ahead 0.17% at $63.57.
In Australia, the S&P/ASX 200 eked out gains of 0.07% to 7,063.50, while across the Tasman Sea, New Zealand’s S&P/NZX 50 added 0.38% 50 12,684.73.
The down under dollars were both weaker against the greenback, with the Aussie last off 0.1% at AUD 1.2914, and the Kiwi retreating 0.19% to NZD 1.3974.