Asian Stocks Close Broadly Higher Despite Selling Pressure on Japanese Shares

August 14, 2017
Asian Stocks Close Broadly Higher Despite Selling Pressure on Japanese Shares

By Investors Hub

Asian stocks closed broadly higher on Monday, although concerns over a rising yen kept Japanese shares under selling pressure.

While upbeat Japanese GDP data, deteriorating Fed rate expectations and easing geopolitical concerns helped spur some bargain hunting after last week’s steep losses, lower oil prices and disappointing Chinese data kept a lid on overall gains in the region.

China’s industrial production growth eased at a faster-than-expected pace in July, official data from the National Bureau of Statistics showed.

Industrial production climbed 6.4 percent year-over-year in July, slower than the 7.6 percent spike in June. Economists had expected the growth to moderate to 7.1 percent.

Retail sales advanced 10.4 percent annually in July, following a 11.0 percent surge in the prior month. The expected rate of growth for the month was 10.8 percent.

Fixed asset investment grew at a slightly slower pace of 8.3 percent in July from a year ago, after a 8.6 percent hike in June.

China’s Shanghai Composite index jumped 28,82 points or 0.90 percent to 3,237.36 while Hong Kong’s Hang Seng index was up nearly 1.4 percent at 27,250 in late trade.

Japanese shares fell sharply to hit a 3-1/2-month low as trading resumed after a long holiday weekend.

The Nikkei average fell 192.64 points or 0.98 percent to 19,537.10, the lowest level since May 2, as concerns over a rising yen offset data that showed the Japanese economy grew at the fastest pace in more than two years in the second quarter.

The broader Topix index closed 1.12 percent lower at 1,599.06, dragged down by exporters and financials.

Japan’s GDP surged an annualized 4.0 percent in April-June – topping expectations for 2.5 percent and up from the upwardly revised 1.5 percent jump in the first quarter, official data showed.

Australian shares advanced, led by material and financial stocks as London copper and aluminum prices held near recent two-year highs on a weaker dollar following Friday’s weak U.S. inflation data.

The benchmark S&P/ASX 200 rose 37.30 points or 0.66 percent to 5,730.40 while the broader All Ordinaries index ended up 35.10 points or 0.61 percent at 5,778.60.

Bendigo and Adelaide Bank soared 7.5 percent on reporting a 4.2 percent increase in its full-year cash profit. Commonwealth Bank of Australia rose 1 percent after the bank announced the departure of its chief executive Ian Narev by the end of the 2018 financial year.

Mining giants BHP Billiton and Rio Tinto gained about 1 percent each while smaller rival Fortescue Metals Group advanced 1.1 percent. Gloves and protective clothing maker Ansell tumbled 3.1 percent after its full-year profit missed forecasts.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

Leave a Reply

European Stocks1
Previous Story

European Shares Rebound From Sharp Losses

NSE: Equity Market Opens Week in Red
Next Story

NSE: Equity Market Opens Week in Red

Latest from Economy