As new data shows that the U.S. GDP has grown beyond the expected, its impact was seen on the Asian stocks which rose to some extent on Monday. The latest data from the U.S. indicate that the country’s economy expanded more than expected in the third quarter and thus outweighed concerns about a credit crunch in China which has impacted Asian stocks earlier.
Following the positive wave in the regional market, Hong Kong’s Hang Seng was up 0.7 percent to 22,972.67. A similar pattern was seen in China’s Shanghai Composite which went up by 0.4 percent to 2,092.99. The results from the Chinese stock market are pleasing as in the last week these were at the receiving end.
A positive trend was also seen in South Korea’s KOSPI which went up by 0.7 percent to 1,997.82. Some other regional stock markets like Taiwan, Singapore and New Zealand advanced to some extent and set a trend and paced up. As Tokyo stock markets were closed for a holiday today, there are no data for it.
U.S. Stocks Traded Well during the Previous Trading Day
The positive wave in Asian market is on expected line as on Friday the U.S. stocks fared better when the government figures showed that the U.S. economy grew 4.1 percent in the third quarter over a year earlier. Thus, it is in continuity where stocks are showing that they are still hot investment options.
The U.S. GDP grew at the pace which is more than the previous estimate of 3.6 percent. This has strengthened the view that the world’s largest economy will lead the developed market’s growth next year. This sent stock values to new heights on Friday and today it gave impetus to the Asian stocks.
The Dow Jones Industrial average rose 0.3 percent during Friday’s trading. A similar pattern was seen in the Standard & Poor’s 500 index which gained 0.5 percent. Even the NASDAQ composite advanced 1.2 percent. Positive indications coming from the U.S. economy are definitely going to signal that the largest economy in the world can still be the good investment option.
Investors are also looking for the Asian market as it may go on a positive track after China’s declaration that it injected $50 billion into the markets to ease a cash squeeze. In its statement that came last week, the People’s Bank of China injected liquidity after the interbank market showed stress.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org