Investing.com - Asian stock markets kicked the week off with strong gains on Monday, with shares in Japan and mainland China rallying following the release of upbeat Japanese and Chinese economic data.
During late Asian trade, Hong Kong's Hang Seng Index was up 0.6%, Australia’s ASX/200 Index ended 0.71% higher, while Japan’s Nikkei 225 Index surged 2.49%.
In Tokyo, the Nikkei rallied to hit a four-week high after data showed that Japan’s economy grew by a seasonally adjusted 3.8%, well above the prior estimate of growth of 2.6%.
Sentiment was also boosted after Tokyo was chosen Saturday by the International Olympic Committee to host the 2020 Summer Olympics, beating Istanbul and Madrid.
The news buoyed shares in the construction sector, with Kajima and Taisei surging 9.7% and 13.75% respectively, while real estate developers Mitsubishi Estate and Mitsui Fudosan jumped 4.7% and 6.4%.
Japanese megabanks were also higher, with shares of the nation’s largest lender Mitsubishi UFJ Financial Group gaining 1.6%, while Sumitomo Mitsui Financial Group and Nomura Holdings advanced 2.5% and 2.9% respectively.
Index heavyweights Fast Retailing and Softbank saw shares gain 3.35% and 1.1% respectively.
Meanwhile, in Hong Kong, the Hang Seng rose to the highest level since May 29 amid growing optimism over China’s economic outlook.
The Chinese National Bureau of Statistics said earlier that consumer price inflation rose 2.6% in August, in line with expectations and slowing from 2.7% in July.
The inflation report came one day after data showed that China’s trade balance widened more-than-expected in August, easing concerns over a slowdown in the world’s second-largest economy.
Official trade data released on Sunday showed that China’s trade surplus widened to USD28.6 billion from a surplus of USD17.8 billion in July, compared to estimates for a surplus of USD20 billion.
Chinese exports rose 7.2% from a year earlier in August, beating expectations for a 6% increase and following a 5.1% gain in July.
Market players now looked ahead to a raft of Chinese economic data on Tuesday, including reports on industrial production and retail sales.
Ping An Insurance Group saw shares climb 3.2% after it agreed to purchase USD2.4 billion worth of Ping An Bank stock to bolster its financial strength.
The China banking sector were among the biggest gainers on the index, with Agricultural Bank of China shares jumping 4.6%, China Minsheng Bank rising 6.2% and Industrial and Commercial Bank of China adding 1.5%.
Elsewhere, in Australia, the benchmark ASX/200 Index inched higher as investors reacted to federal elections held over the weekend.
Australia's conservative leader Tony Abbott swept into office in a landslide election Saturday, beating out outgoing Prime Minister Kevin Rudd.
Mining heavyweights were broadly higher amid hopes the newly-elected Liberal National coalition will act to remove taxes on carbon emissions and parts of the mining industry.
BHP Billiton and Rio Tinto climbed 1.4% apiece, while Newcrest Mining Group surged 3.4%.
Looking ahead, European stock market futures pointed to a higher open.
The EURO STOXX 50 futures pointed to a gain of 0.45% at the open, France’s CAC 40 futures added 0.35%, London’s FTSE 100 futures eased up 0.4%, while Germany's DAX futures pointed to a rise of 0.35% at the open.
Investors continued to speculate over the timing of the Federal Reserve’s widely expected reduction in monthly bond purchases following Friday’s weaker-than-forecast U.S. jobs report.
The Department of Labor said the U.S. economy added 169,000 jobs in August, fewer than the 180,000 forecast by economists.
The report also said that job growth in July was revised down to 104,000 from 162,000, while June’s figure was revised down to 172,000 from 188,000.
The unemployment rate ticked down to a four-and-a-half year low of 7.3% from 7.4% in July, but this was partially due to more people dropping out of the labor force.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of global equities.
During late Asian trade, Hong Kong's Hang Seng Index was up 0.6%, Australia’s ASX/200 Index ended 0.71% higher, while Japan’s Nikkei 225 Index surged 2.49%.
In Tokyo, the Nikkei rallied to hit a four-week high after data showed that Japan’s economy grew by a seasonally adjusted 3.8%, well above the prior estimate of growth of 2.6%.
Sentiment was also boosted after Tokyo was chosen Saturday by the International Olympic Committee to host the 2020 Summer Olympics, beating Istanbul and Madrid.
The news buoyed shares in the construction sector, with Kajima and Taisei surging 9.7% and 13.75% respectively, while real estate developers Mitsubishi Estate and Mitsui Fudosan jumped 4.7% and 6.4%.
Japanese megabanks were also higher, with shares of the nation’s largest lender Mitsubishi UFJ Financial Group gaining 1.6%, while Sumitomo Mitsui Financial Group and Nomura Holdings advanced 2.5% and 2.9% respectively.
Index heavyweights Fast Retailing and Softbank saw shares gain 3.35% and 1.1% respectively.
Meanwhile, in Hong Kong, the Hang Seng rose to the highest level since May 29 amid growing optimism over China’s economic outlook.
The Chinese National Bureau of Statistics said earlier that consumer price inflation rose 2.6% in August, in line with expectations and slowing from 2.7% in July.
The inflation report came one day after data showed that China’s trade balance widened more-than-expected in August, easing concerns over a slowdown in the world’s second-largest economy.
Official trade data released on Sunday showed that China’s trade surplus widened to USD28.6 billion from a surplus of USD17.8 billion in July, compared to estimates for a surplus of USD20 billion.
Chinese exports rose 7.2% from a year earlier in August, beating expectations for a 6% increase and following a 5.1% gain in July.
Market players now looked ahead to a raft of Chinese economic data on Tuesday, including reports on industrial production and retail sales.
Ping An Insurance Group saw shares climb 3.2% after it agreed to purchase USD2.4 billion worth of Ping An Bank stock to bolster its financial strength.
The China banking sector were among the biggest gainers on the index, with Agricultural Bank of China shares jumping 4.6%, China Minsheng Bank rising 6.2% and Industrial and Commercial Bank of China adding 1.5%.
Elsewhere, in Australia, the benchmark ASX/200 Index inched higher as investors reacted to federal elections held over the weekend.
Australia's conservative leader Tony Abbott swept into office in a landslide election Saturday, beating out outgoing Prime Minister Kevin Rudd.
Mining heavyweights were broadly higher amid hopes the newly-elected Liberal National coalition will act to remove taxes on carbon emissions and parts of the mining industry.
BHP Billiton and Rio Tinto climbed 1.4% apiece, while Newcrest Mining Group surged 3.4%.
Looking ahead, European stock market futures pointed to a higher open.
The EURO STOXX 50 futures pointed to a gain of 0.45% at the open, France’s CAC 40 futures added 0.35%, London’s FTSE 100 futures eased up 0.4%, while Germany's DAX futures pointed to a rise of 0.35% at the open.
Investors continued to speculate over the timing of the Federal Reserve’s widely expected reduction in monthly bond purchases following Friday’s weaker-than-forecast U.S. jobs report.
The Department of Labor said the U.S. economy added 169,000 jobs in August, fewer than the 180,000 forecast by economists.
The report also said that job growth in July was revised down to 104,000 from 162,000, while June’s figure was revised down to 172,000 from 188,000.
The unemployment rate ticked down to a four-and-a-half year low of 7.3% from 7.4% in July, but this was partially due to more people dropping out of the labor force.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of global equities.