Japanese stocks led Asian markets higher on Thursday after third-quarter growth data beat expectations, while renewed expectations that the U.S. Federal Reserve would maintain its stimulus weighed on the dollar.
In Tokyo, the Nikkei 225 index regained 309.25 points, or 2.1%, to 14,867.41
Hong Kong’s Hang Seng Index recovered 185.32 points, or 0.8%, to 22,649.15
Japan’s gross domestic product grew at an annualized rate of 1.9% in the three-month period that ended in September. Although the result represents a sharp slowdown from the second quarter, when the economy grew by 3.8%, the lower number was anticipated. In fact, the reading exceeded a 1.7% forecast by economists polled by The Wall Street Journal.
The growth data is the latest check on the progress of a range of pro-growth policies in Japan, known as "Abenomics". These measures include aggressive monetary easing from the Bank of Japan that has pushed down the value of the yen, contributing to a 41.7% year-to-date gain on the Nikkei so far this year
The dollar was weaker against a number of Asian currencies after Federal Reserve chair nominee Janet Yellen released remarks suggesting the central bank should continue supporting the U.S. economy with stimulus.
In a prepared statement, Yellen said that unemployment at 7.3% in October was still too high, "reflecting a labour market and economy far short of their potential".
South Korea’s won traded at 1,066.89 won to the dollar, compared with 1,071.10 won late Wednesday.
The hopes for continued easing from the U.S. also supported regional stocks, which were recovering from a sharp drop in the previous session. Stocks across Asia fell on Wednesday after the Chinese government released a vague communiqué following a major political meeting, hurting expectations for economic reform in the world’s second-largest economy.
In other markets;
Shanghai’s CSI 300 index added 16.38 points, or 0.7%, to 2,304.50
Korea’s Kospi Index moved ahead four points, or 0.2%, to 1,967.56
Taiwan’s Taiex Index grew 30.65 points, or 0.4%, to 8,134.91
The Singapore Straits Times Index was better by 24.34 points, or 0.8%, to 3,191.08
In New Zealand, the NZX 50 inched forward 8.52 points, or 0.2%, to 4,927.18
In Australia, the S&P/ASX 200 progressed 36.25 points, or 0.7%, to 5,355.43
