China Data Buoys: Asian stocks hit 3-month highs
REUTERS/Nicky Loh
Sydney – Reuters:

Asian stocks rose to three-month highs on Tuesday in the face of fresh evidence suggesting China could be emerging from an economic slowdown while receding fears of a U.S. military strike against Syria kept oil prices under pressure.

European stocks were seen tracking gains in Asia with financial spread betters expecting Germany’s DAX to open up as much as 0.5 percent.

Benchmark Brent oil prices fell 0.8 percent to $112.85 a barrel, extending Monday’s 2.1 percent slide. U.S. crude slipped 1.0 percent to $108.44.

Lower oil prices are usually a positive development for Asia, a region that relies heavily on imports for its energy needs.

 

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.2 percent, extending Monday’s 1.3 percent gain to reach highs not seen since early June.

Tokyo’s Nikkei closed 1.5 percent higher, adding to Monday’s 2.5 percent rally as news that Tokyo had won the right to host the 2020 Olympic Games bolstered optimism for a lasting economic recovery.

Upbeat Chinese industrial output and retail sales data on Tuesday added to growing evidence that China’s economic slowdown may have bottomed out.

“China’s August real activity data came in stronger than expected, which will help sustain the market rally due to improving market sentiment towards China’s economy,” said Li-Gang Liu, chief economist of Greater China at ANZ in Hong Kong.

A recent run of encouraging factory activity data from China, Europe and the United States suggested the global economy as a whole was on a firmer footing.

 

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