Chinese shares on Friday headed into the weekend with strong gains as a rush of upbeat data reaffirmed that the economic recovery was continuing. Financial and mining shares led the gains in Shanghai, as well as some other regional markets.
Shanghai’s 300 Composite Index gained back 75.22 points, or 2.4%, to 3,238.13.
Market confidence across most of the region was inspired by much-anticipated Chinese data for August. The numbers showed industrial production growth of 12.3% from the same month a year earlier, while urban fixed-asset investment rose 33%. Furthermore, bank lending was well above market expectations. Concerns that banks could curb lending in the second half of the year had earlier hit Chinese stocks.
In Shanghai, shares of Industrial & Commercial Bank of China rose 3.5% and China Construction Bank jumped 4.5%, while Shandong Gold-Mining added 3%. In Hong Kong, ICBC rose 0.9% and China Construction Bank gained 0.3%, with Zhaojin Mining Industry jumping 5.3%.
The Nikkei 225 index in Tokyo fell 69.34 points, or 0.7%, to end the week at 10,444.33.
Sentiment was damped by revised gross domestic product for the April-June period showing a 0.6% expansion from the previous quarter, below the preliminary result for 0.9% growth. Economists were largely expecting no change from the preliminary result.
Auto makers were hurt by the growing strength of the Japanese currency, with Toyota Motor down 1.8% and Honda Motor 2.1% lower.
In Hong Kong, the Hang Seng index gained 91.86 to 21,161.42.
Economic recovery hopes were also helping cyclical and financial stocks elsewhere. BHP Billiton rose 0.8% and Bendigo & Adelaide Bank climbed 5.2% in Sydney, KB Financial climbed 4.1% in Seoul.
In foreign exchange markets, the U.S. dollar was broadly weaker as the Chinese data helped to improve risk appetite. The greenback was recently buying 90.96 yen, compared with 91.70 yen in late New York trade Thursday. The euro was little changed at $1.4584, but fell against the yen to 132.69 yen from 133.73 yen.
Japanese government bonds were up, tracking the sharp rise in U.S. Treasurys on Thursday and the weak Nikkei. The lead December futures contract was up 0.22 points at 139.15. The 10-year yield was down two basis points at 1.3%.
Spot gold touched a high of $1,004 U.S. after the Chinese data was released, before giving some of its gains. It was recently up $1.30 from New York levels to $997.70 U.S. per troy ounce.
Nymex October crude-oil futures were down 40 cents at $71.54 U.S. per barrel on Globex
Elsewhere:
Singapore’s Straits Times Index eased back 0.99 points, to 2,681.03
South Korea’s Kospi index put on 7.02 points, or 0.4%, to 1,651.70
Taiwan’s Taiex moved ahead 5.06 points, or 0.1%, to 7,337.14
New Zealand’s NZX 50 Index was up 10.50 points, or 0.3%, to 3,137.18
Australia’s S&P/ASX 200 gained 25.30 points, or 0.6%, to 4,596.10
