Asian stocks mostly rose today (January 20th) after China released data showing its economy grew faster than expected, amid ongoing speculation that the European Central Bank (ECB) is to launch a large stimulus programme.
China's fourth quarter gross domestic product reached 7.3 per cent from the year-ago period. This was slightly higher than the 7.2 per cent forecast by analysts.
China's benchmark Shanghai Composite index rose nearly two per cent, after plunging 7.7 per cent yesterday as regulators punished three major brokerages for rule violations.
"The speculation is that the ECB will come up with large scale QE and that’s what the market is playing at the moment,” Mark Andersen, co-head of global asset allocation at UBS Group AG’s wealth-management unit, told Bloomberg. "On the China side the positive story today was that we didn’t see the economy slow further."
Tokyo shares soared 2.07 per cent to 17,366.30 while Seoul closed 0.82 per cent higher to 1,918.31. Shanghai gained 1.82 per cent to 3,173.05 and Hong Kong rose 0.90 per cent to 23,951.16.
Learn about the Asian markets and CFD trading at City Index.
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.