Asian shares ended little changed today (October 19th) – after a choppy session – following the release of fresh Chinese economic data which reassured investors that the government stimulus was having a positive impact.
While the country grew at its weakest pace in September (6.9 per cent) since the global financial crisis, it remained above market expectations. A growth of 6.8 per cent had been forecast by analysts.
"The GDP data is better than anticipated. It could mean that previously-announced stimulus, such as infrastructure investments, is beginning to work," Yang Hai, strategist at Kaiyuan Securities, told Reuters. "The market is turning optimistic, against a backdrop of ample liquidity."
In addition, sentiment was boosted by ongoing speculation that the US Federal Reserve would hold off rising interest rates until next year.
Japan's Nikkei 225 was down 0.9 per cent to 18,131.23 and China's Shanghai Composite Index edged down 0.1 per cent to 3,386.70. Hong Kong's Hang Seng edged up 0.04 per cent at 23,075.61 and South Korea's Kopsi was flat at 2,030.27. Australia's S&P/ASX 200 inched up 0.03 per cent to 5,269.70.
StoneX Financial Ltd (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.