Asian shares were mostly up today (May 20th) on new data showing new residential construction in the US jumped to the highest level in more than seven years in April, fuelling hopes that the country's economy will bounce back after disappointing GDP growth data in Q1.
A surprise announcement from Benoit Coeure, a top European Central Bank official, also boosted sentiment. He said the bank will increase May and June bond purchases in a bid to stimulate the eurozone's economic recovery.
Meanwhile, Japan's better-than-expected economic growth lifted the Nikkei to a 15-year high. The benchmark Nikkei 225 rose 0.9 per cent to 20,196.6, the highest closing level since April 14, 2000.
Asia's second-largest economy expanded an annualised 2.4 per cent from the previous quarter, beating forecasts for growth of 1.5 per cent.
South Korea's Kospi gained 0.9 per cent to 2,139.61, China's Shanghai Composite Index rose two per cent to 4,507.35. Hong Kong's Hang Seng was little changed at 27,686.45. However, markets in Singapore and Taiwan were lower.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.