Asian Markets Rise As China's Stimulus Cheer Offsets PCE Jitters

Equity markets in Asia cheered China implementing policy announcements made earlier in the week to support economic growth. The euphoria eclipsed anxiety surrounding the release of the PCE-based inflation readings from the U.S. on Friday.

China’s Shanghai Composite Index surged 2.8 percent to finish trading at 3,086.08. The day’s trading ranged between 3,086.14 and 3,017.45. The highest level in four months also helped Shanghai Composite to post the best week since 2008. The Shenzhen Component Index jumped 6.7 percent to close at 9,514.86.

The Japanese benchmark Nikkei 225 Index rallied 2.3 percent to close at 39,829.56. The day’s trading range was between 39,829.56 and 38,917.98.

Lasertec Corp. gained 8.2 percent followed by Isetan Mitsukoshi Holdings that rallied 7.1 percent. Ebara Corp., Tokyo Electron and Daikin Industries all gained more than 6 percent.

Sumitomo Mitsui Financial and Softbank Corp. shed more than 3 percent. Nichirei Corp., Resona Holdings and Mizuho Financial Group all slipped more than 2.5 percent.

The Hang Seng Index of the Hong Kong Stock Exchange surged 3.6 percent to finish trading at 20,632.30. Liquidity boosting measures implemented by China bolstered market sentiment. The day’s trading range was between a high of 20,743.20 and a low of 20,268.63.

The Korean Stock Exchange’s Kospi Index slid 0.8 percent or 22 points to close trading at 2,649.79. The day’s trading range was between 2,649.79 and 2,681.45. Sharp losses in biopharmaceutical and auto stocks dragged the benchmark index lower.

Australia’s S&P/ASX200 Index closed trading at 8,212.20, gaining 0.1 percent. The day’s trading range was between 8,203.7 and 8,225.5.

Mineral Resources gained 13.9 percent followed by The A2 Milk Company that rallied 8.9 percent. Liontown Resources, Treasury Wine Estates and Siteminder all gained more than 8 percent in the day’s trading.

Shares of casino operator The Star Entertainment Group plunged 44 percent in the backdrop of a second straight year of multi-billion-dollar losses. Fletcher Building shed 6 percent. Karoon Energy and Judo Capital Holdings both erased more than 4 percent followed by Light & Wonder that slipped 3.7 percent.

The NZX 50 of the New Zealand Stock Exchange shed 0.3 percent to close trading at 12,457.41. Trading ranged between 12,457.41 and 12,561.03.

The a2 Milk Company jumped 11.3 percent. KMD Brands rallied 8.7 percent. Port Tauranga gained 4.4 percent. Synlait Milk and Summerset Group Holdings also added close to 4 percent in the day’s trading.

Building materials business Fletcher Building topped losses with a decline of 5.5 percent. Oceania Healthcare, which owns and operates retirement villages and care facilities for the elderly, followed with a loss of 5.2 percent. Ryman Healthcare declined 4 percent followed by Skycity Entertainment that slipped 3.5 percent. Utilities business Contact Energy also suffered a loss of 2.7 percent in the day’s trading.

Wall Street closed on a positive note on Thursday amidst upbeat corporate earnings and strong economic data. Durable goods orders were unchanged in August versus market expectation of a 2.6-percent decline. The final reading of the second quarter GDP was also unrevised at 3 percent. Also, weekly data showed an unexpected decline in the initial jobless claims.

The Nasdaq Composite added 0.6 percent to close trading at 18,190.29 whereas the Dow Jones Industrial Average added 0.6 percent to finish trading at 42,175.11.