Healthy Chinese GDP boosts Asian markets

<p>Asian markets were boosted by China’s positive GDP numbers today – the key regional catalyst for driving risk assets higher. China reported that the annualised […]</p>

Asian markets were boosted by China’s positive GDP numbers today – the key regional catalyst for driving risk assets higher.

China reported that the annualised GDP for the fourth quarter was 8.9% which was slightly ahead of the 8.7% market consensus. China also reported an 18.1% rise in retail sales over the same period, above market estimates of 17.2%.

In terms of industrial output, the number showed a 12.8% rise but fixed asset investment was slightly below the anticipated 23.8%.

The MSCI Asia Pacific index was up 1.2% in late afternoon Tokyo trading following a decline of similar proportions yesterday.

The Euro bounced back above 1.27 against the US dollar, last trading at 1.2725 and the Australian dollar traded briefly above 1.04 US cents before falling back slightly following the Chinese GDP numbers.

The US dollar continues to trade in a very tight band against the Japanese Yen, last at 77.70. Copper was last 2.6% higher at US$3.72.

Also today, Rio Tinto reported a quarterly production which echoed the strength in the Chinese economy. Iron ore production was slightly above expectations, Bauxite was in line while Coal and Copper disappointed.

Still, iron ore is the key earnings composition segment for Rio Tinto. The stock finished 1.3% higher following the production report. CEO Tom Albanese said “this was another record breaking year in the Pilbara with both quarter and full year iron ore production and shipments beating previous achievements.”


Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

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.

For further details see our full non-independent research disclaimer and quarterly summary.