Asian Stocks rebound from morning losses on Friday but struggled to remain positive after disappointing corporate earnings weighed down Wall Street with most Asian and European markets closed for Labor Day.
The Japanese Nikkei 225 rebounded from a four year intraday low to end 0.1% higher at 19,531.63. Better than expected economic data helped lift market sentiment after US stocks sold off the previous day.
CNBC reported that Japan’s consumer inflation in the second largest economy in Asia advanced by 2.2% in March to exceed analysts’ forecasts of a 2.1% growth and to top the 2.0% growth reported in February.
According to the report, household spending in the country fell by 10.6% on year in the month of March which was below the 12.1% forecasted by market analysts but well above the 2.1% reported in February. Jobless rate fell from 3.5% in February to 3.4% in March.
Australia’s S&P ASX 200 benchmark index rebound from morning weakness to close 0.4% higher at 5814.40 points boosted by positive economic data from the mainland and gains in mining stocks as investors await the Reserve Bank of Australia’s policy meeting next week.
The London FTSE 100, the only major index open on Friday in Europe, edged up by 0.36% to 6985.5 points with gains in mining stocks and subdued deals lift the index from morning losses.
Weak economic data from China also helped drive the stocks with the latest bout of weak data lifting market expectations of an economic stimulus from the world’s second largest economy.
“With Europe mostly out of action for May Day, it was a quiet day in London, but at least the traditionally weak period for equities has started off on the right foot,” analyst Chris Beauchamp at trading firm IG, told Yahoo News.
“Miners continue to dominate the top end of the FTSE 100 on revived hopes that the Chinese government will be hustled into fresh stimulus measures by the general lack of strength in economic data,” he said.
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