Asian stocks are bullish today as indications from the U.S. markets gained on stronger corporate profits and Japan is on a recovery path. Another positive indication is China reported a rebound in economic growth in the latest quarter and expected to have steady growth, though double digit growth is not even close for the country.
Upbeat market is due to the speculation that the Fed won’t taper its bond-purchasing program until March next year. The speculation is based on the fact that the shutdown slowed fourth-quarter U.S. growth and also interrupted the flow of data.
While Tokyo’s Nikkei 225 index rose 0.8 percent to 14,674.80, China’s benchmark Shanghai Composite Index added 1.1 percent to 2,218.55. Like Japanese and Chinese stocks, stocks from Hong Kong, Seoul and Sydney also rose and showing that the bullish trend will continue for the next couple of days.
Major gainer is Canon Inc., the world’s biggest camera maker. It gained 1.6 percent thanks to weaker yen, a major contributor in the earnings outlook for Japanese exporters. The MSCI Asia Pacific Index added 0.2 percent to 143.76 as of 2:23 p.m. in Tokyo. The increase in the gauge is due to China’s economic growth reported lately.
Hong Kong based Tencent Holdings Inc. also gained among Internet companies amidst the news that industry giant Google Inc.’s ad sales topped estimates. However, Qantas Airways Ltd. shares were bearish today as they slipped 5.6 percent, extending losses for a second day. The largest carrier in Australia said last week that it expects the lowest yields for passenger flights.
Indian Stocks on Sky High
In early morning stock trading, most Indian stocks gained. The benchmark stock index advanced to the highest level in almost three years last week and the trend is still continuing as lenders and industrials are rallying. Major gainer is Larsen & Toubro Ltd. (LT) which advanced to a three-month high as it earned more than expected in the second quarter.
The largest private sector bank, ICICI Bank Ltd. is heading for its highest price in a month. The country is getting foreign investment and the latest data tell that foreign investors have bought a net $1.2 billion of local shares this month; in the last month it was $2 billion. May be by the end of the month, foreign investment may reach September’s level.
To contact the reporter of this story: Jonathan Millet at email@example.com