Optimism in USA infected the Asian markets

USA financesThe optimism, which covered the United States after the publication of the GDP data for the largest economy in the world for the second quarter infect Asian stock markets on Thursday. The Chinese benchmark Shanghai Composite jumped 1.8%, while Hong Kong’s Hang Seng rose 0.9%. The growth came after the official China PMI index unexpectedly rose to 50.3 points in July to 50.1 points in June. All values ‚Äč‚Äčabove 50 indicate improvement in business conditions. The official government data differ from earlier results by HSBC, which showed a drop to 47.7 points, reaching 11-month low.
“The growth in the official China PMI index did not come out of the blue. Official data give greater weight to heavy industry where there was a twist in the last few months”, commented in a note to clients of Capital Economics. “The demand for investment remains strong, as the government encouraged industrialization and urbanization”, said Sue Shaosha on Wednesday, the head of the National Commission for Development and Reform Commission, said in a statement on the website of the department. “We are confident that we have the conditions and ability to achieve projected annual growth of around 7.5%”, said he.
On the Shanghai Stock Exchange the shares of China Oilfield Services Ltd. rose by 5.1%, while Haitong Securities Co. added 6.5 percent. Securities Gemdale Corp even climbed 3.5 percent. In Hong Kong logistics company Li & Fung Ltd. ended the session with a growth of 3.1%, while the leading Internet service provider Tencent Holdings Ltd won 2.5%. Shares of Hang Lung Properties Ltd. even added 1.8%.
Meanwhile, Japan’s Nikkei Stock Average reached its highest one-day rise for the last three weeks – 2.5%. Australian Index S&P/ASX 200 rose 0.2%, while South Korea’s Kospi, in turn, added 0.4% to its value.
“The main event this week has come and gone, leaving market participants more confused. Though there were no major surprises from the Fed, analysts saw little more peaceful tone than expected”, said strategist at IG Markets Stan Shamu.
The minutes after a two-day meeting on monetary policy, the Fed gave no signals on future intentions towards his massive 85 billion dollar program to purchase assets. At the same time, published on Wednesday by the state’s Department of Commerce data showed the U.S. economy expanded by 1.7% yoy in the second quarter, exceeding expectations for growth in the 1%. On the Sydney Stock Exchange recorded gains of the energy and trading companies. Securities of Woodside Petroleum Ltd. rose by 1.8%, while the market capitalization of the Wesfarmers Ltd increased by 0.4%. The Australian banks recorded declines, led by the fall in the Australian dollar to near 3-year low on Wednesday. The shares in Commonwealth Bank of Australia tumbled 1.5 percent, while National Australia Bank Ltd. lost 1.6%. The securities of some of the leading Japanese companies noted sensitive movements in the peak season of the accounts. Panasonic’s shares rose by 6.8% after the technology company reported better than expected financial results for the second quarter. Such was the situation at Tokyo Electric, whose shares rose 8 percent. Movement downwards said Honda Motor Co, which fell by 0.7% after poor results ended June 30 quarter.

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