China’s stock market burst back in to life this week with the Shenzhen index recording its best performance since 2008, while Shanghai rose for a fourth day on Friday to hit a fresh seven-year high.
In Tokyo, the Nikkei 225 index hiked 61.54 points, or 0.3%, to 20,264.41, renewing a 15-year high. The dollar fell after announcements by the central bank, but remained up for the week.
The Bank of Japan said the country’s economy is improving moderately, with its nine-member policy board voting 8-1 to leave its policy framework unchanged, keeping the bank’s annual asset purchases at ¥80 trillion ($660 billion U.S.). The BOJ last expanded its easing measures in October.
On Wednesday, data showed Japan’s economy growing at a 2.4% annualized pace, well above expectations for a 1.5% expansion.
In Hong Kong, the Hang Seng Index rocketed up 469.11 points, or 1.7%, to 27,992.83. . Much of the attention in the city has been on a clutch of shares that have taken big tumbles after a rapid rise earlier in the year.
CHINA
The Shanghai CSI 300 rose 110.71 points, or 2.3%, to 4,951.59
The rapid gains extend an explosive yearlong rally in the world’s second-biggest economy as Beijing steps up monetary easing and money floods in from overseas thanks to a new trading link with Hong Kong.
Still, the rally had taken a brief pause in recent weeks on worries it had gone too far and too fast, but the bulls have recently returned, buoyed by a new wave of government-funded infrastructure projects. They include a number of railway and subway projects announced Tuesday worth $72.6 billion U.S. and aimed at getting the sluggish economy speeding up.
Another driver has been a relaxation of rules by Beijing that makes it easier for local governments to raise money, a move that could provide the economy with a short-term lift but marks a reversal on efforts to tackle a mountain of debt.
Shares of Chinese solar marker Hanergy Thin Film Power Group Ltd. plunged nearly 50% on Wednesday before trading was, and remains, halted.
On Thursday, the selling spread to Goldin Financial Holdings Ltd., a broker that provides short-term corporate financing to firms, and property developer Goldin Properties Holdings Ltd. Both are listed in Hong Kong and have the same major shareholder.
In other markets
In Korea, the Kospi index regained 23.29 points, or 1.1%, to 2,146.10
In Taiwan, the Taiex gained 60.24 points, or 0.6%, to 9,638.80
In Singapore, the Straits Times index nicked up 0.18 points to 3,439.86
In New Zealand, the NZX 50 picked up 6.75 points, or 0.1%, to 5,776.02
In Australia, the S&P/ASX 200 nicked up 2.47 points to 5,664.74
