Asian stock markets rose Monday after data showed China’s economy grew in line with expectations in the second quarter, belying some fears of a sharper slowdown.
Japanese markets were closed for a holiday
Hong Kong’s Hang Seng Index regained 26.03 points, or 0.1%, to 21,303.31
In Hong Kong, China Resources Enterprise Ltd., which has interests from food-and-beverages to retail, climbed 3.3%, while Internet major Tencent Holdings Ltd. climbed 3.7%, while banks ended on a mixed note.
Energy producers and banks underpinned gains in Sydney following the Chinese economic data, with Linc Energy Ltd. soaring 26% after informing investors that it has completed drilling work on a well with a daily production rate of 1,000 barrels of oil equivalent in Texas’ Cedar Point Field.
CHINA
The Shanghai Shenzhen CSI 300 took on 31.92 points, or 1.4%, to 2,307.30, after data from China’s National Bureau of Statistics put quarterly gross domestic product growth at 7.5%.
Other economic data released Monday also helped ease some worries, with June retail sales, in particular, rising a better-than-expected 13.3%.
The GDP growth figure — although weaker than the 7.7% expansion recorded in the first quarter — matched expectations in separate surveys of economists
The data followed intense debate over the growth trajectory, as analysts worried that the Chinese economy may face more difficulties as Beijing refrained from providing additional fiscal or monetary stimulus.
The gains in Shanghai also came after China’s Xinhua news service — which had late last week cited Finance Minister Lou Jiwei as tipping 7% growth for 2013 — corrected its story over the weekend. The corrected report said the minister had actually indicated the economy would expand 7.5% this year, in line with the government’s official target.
Several Chinese banks rallied to lead the rebound in Shanghai. China Citic Bank Corp. climbed 4.3%, while Bank of Communications Co., or BoCom, rose 1.8%.
The banking-led advance also followed data released by the People’s Bank of China after the market close Friday, showing a slowdown in June in total social financing — the broadest measure of credit in China — from the level seen in May.
Meanwhile, China’s statistics bureau said today that the non-performing loan ratio at the country’s commercial banks sat at 1%, up slightly from 0.9% in the first half of 2012 but still relatively low.
In other markets;
Taiwan’s Taiex Index gained 34.19 points, or 0.4%, to 8,254.68
Singapore’s Straits Times Index eked higher 0.76 points to 3,236.82
Korea’s Kospi Index tacked on 5.18 points, or 0.3%, to 1,875.16
In New Zealand, the Exchange 50 Gross Index gained 37.91 points, or 0.8%, to 4,606.24
In Australia, the S&P/ASX 200 moved higher 7.22 points, or 0.2%, to 4,981.11
