Asian Stocks Rise as World Bank Raise Forecast for China’s Growth

By Investors Hub

Asian stocks advanced on Tuesday as investors remained optimistic about the outlook for Republican tax reform and the World Bank raised its forecast for China’s growth in 2017, citing rising household incomes and a recovery in global trade.

The U.S. House of Representatives is scheduled to vote on the tax bill later in the day, while a vote in the Senate is expected to follow shortly on the heels.

China’s Shanghai Composite index jumped 28.62 points or 0.88 percent to 3,296.54, reflecting gains in other regional markets and overnight gains on Wall Street. Hong Kong’s Hang Seng index was up 0.70 percent at 29,253 in late trade.

Japanese shares edged lower amid profit taking as the year-end holiday season approaches. The Nikkei average shed 33.77 points or 0.15 percent to end at
22,868, while the broader Topix index closed 0.15 percent lower at 1,815.18.

Kajima Corp tumbled 5.2 percent, Taisei Corp slumped 6.3 percent and
Shimizu declined 2.8 percent on reports prosecutors had raided their headquarters for alleged anti-trust violations linked to a high-speed rail project.

Australian shares rose, with higher commodity prices and U.S. tax reform hopes buoying investor sentiment. The benchmark S&P/ASX 200 index rose by 32.90 points or 0.54 percent to 6,071.80, while the broader All Ordinaries index ended up 33.20 points or 0.54 percent at 6,163.20.

Mining heavyweights BHP Billiton and Rio Tinto gained around 1 percent each after benchmark nickel prices hit a three-week high on the London Metal Exchange.

Higher gold prices helped lift gold miners, with Newcrest and Evolution Mining rising 1.4 percent and 2.5 percent, respectively.

Lender ANZ advanced 0.7 percent and Commonwealth rose 0.4 percent. Retail Food Group slumped as much as 25.3 percent after a profit warning.

On the economic front, minutes from the Reserve Bank’s December meeting revealed that members believe an appreciating exchange rate could throw a wrench into the domestic recovery. In addition, they observed that inflation is nearing the central bank’s target range.