Healthy Chinese GDP boosts Asian markets
City Index January 17, 2012 10:30 AM
<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.”
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