Saturday , January 16 2021

Asia comforted because China's data suggest a renewal



Sydney (Reuters) – The Asian stock markets retired on Wednesday after investors were released after many Chinese data overwhelmed expectations with a sign that Beijing's policy stimulus could ultimately enter the world's second-largest economy.

PHOTO: PHOTO: Man passes by electronic stock quotation from a tariff broker in Tokyo, Japan, on November 13, 2018. RETURES / Toru Hannah / File photo

The indications for Europe and Wall Street, however, suggested a mixed opening session. In the early European crafts, Euro Stoxx 50 futures and DAX futures were largely unchanged, while London's FTSE futures were shadow weaker. E-minis for S & P 500 added 0.1 percent.

Movements in Asian stock markets were partly modest, as they had already gathered hard since the beginning of the year.

The Japanese Nikkei concluded 0.25 percent after reaching the top five months earlier on the same day.

The broadest index of shares in the Asia-Pacific market of MSCI outside of Japan gained 0.2 percent to the highest level since July. China's blue chips have grown to stay below their best levels since last March.

Investors consider better news from China and were not disappointed with the forecast for economic growth in the first quarter of 6.4 percent.

Major industrial output grew by 8.5% in March from the previous year, the fastest pace since July 2014 and significantly above the forecast for an increase of 5.9%. Retail sales were also satisfied with an increase of 8.7 percent.

Investors reacted by buying an Australian dollar, often a liquid advocate for Chinese games, which rose 0.3 percent to a two-month high of $ 0.7206.

"This suggests that the political measures introduced by Chinese officials last year now bear fruit," said Rodrigo Katrill, senior strategist for the forex strategy at the National Australian Bank.

"We had positive surprises in data on loans and housing data last week, and now GDP is better than expectations, which builds the case that recovery is on the way," he added. "We see the revival of the Chinese economy as a necessary condition for improving the prospects for global growth."

On foreign exchange markets, the green loan finally managed to overcome the yen's resistance to 112.13 to reach the highest since December at 112.16. The last time was 111.96.

Against the basket of major currencies, the dollar was weaker to 96,908, but still in the range from 95.00 to 97.70 held in the past six months.

The euro reached a touch of up to $ 1,1309, recovering from losses caused by a Reuters report that several European Central Bank politicians believe the bank's economic projections are too optimistic.

One currency on the move was the New Zealand dollar, which sank as much as $ 0.6668, after the annual inflation of consumer prices reached much less than the expectation of only 1.5 percent for the first quarter.

Yields for two-year bonds dived 9 basis points to 1.48 percent, while investors seized the New Zealand Reserve Bank (RBZZ) would have to cut rates in response.

Enhanced Chinese data later helped him back to $ 0.6744.

On commodity markets, the overall improvement in risky senses spotted gold spot at the lowest level for this year. That cost 0.2 percent to $ 1,279.25 per ounce.

Oil prices were pledged as fighting in Libya and the decline in Venezuelan and Iranian exports aroused concern over the tightening of the global supply. [O/R]

US crude oil lasted 48 cents to $ 64.53 a barrel, while Brent's futile futures rose 34 cents to $ 72.06.

Additional notice by Swati Pandi; Editing by Sri Navaratnam

Our standards:The Thomson Reuters Trust Principle.

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