SYDNEY (MarketWatch) — Asia markets moved higher Wednesday after data showed a modest slowing in Chinese economic growth, delivering a boost to local markets and those of key trading partners.
Hong Kong’s Hang Seng Index HK:HSI +0.95% traded up 1.0% in early moves, the Shanghai Composite CN:000001 +1.20% gained 0.5%, the Australian S&P/ASX 200 index AU:XJO +0.37% added 0.4%, and South Korea's Kospi KR:0100 +0.47% advanced 0.3%.
Japan’s Nikkei Stock Average JP:NIK +0.20% ended the morning session flat at 9,926.81.
China data
China’s gross domestic product expanded at a faster-than-expected rate of 9.5% in the April-June quarter from the year-ago period. Read more about China’s GDP.
“The encouraging economic data out of China gave a much needed psychological lift to a market looking for any pockets of optimism,” said Tim Waterer from CMC Markets in Sydney.
Hong Kong property stocks gained following the data, with China Overseas Land & Investment Ltd. HK:688 +6.17% surging 4.7% and China Resources Land Ltd. HK:1109 +4.31% adding 4.2%.
Financials also headed higher in early Hong Kong moves, with China Construction Bank HK:939 +2.35% CN:601939 +1.68% rising 2.7%, and Industrial & Commercial Bank of China Ltd. HK:1398 +2.00% gaining 2.2%.
Agricultural Bank of China Ltd. HK:1288 +4.19% CN:601288 +1.50% gained 4.7%, getting an extra boost after saying it sees its January-June profit rising by more than 45%.
The Chinese data also boosted some Australian shares, as Fortescue Metals Group Ltd. AU:FMG +1.67% FSUMF -2.07% rose 1.6%, while BlueScope Steel Ltd. AU:BSL +5.33% BLSFF +7.41% delivered a bounce of 5.3%, and Onesteel Ltd. AU:OST +2.63% OSTLY 0.00% rose 2.2%.
Shares in BHP Billiton Ltd. AU:BHP +0.07% BHP -1.04% added 0.3%, after reports that coking coal mines in northeastern Australia that BHP owns jointly with Mitsubishi Corp. JP:8058 +1.67% MSBHY +0.30% would be affected by rolling strikes this week over a wage dispute.
Among Japan’s main advancers was Mitsui & Co. MITSY +0.25% with shares rising 2.3% after it announced a takeover bid for Singapore’s Portek International Ltd. SG:P09 +1.08% . Other trading houses also climbed, helped by overnight gains in crude oil, with Itochu Corp. JP:8001 +2.21% ITTOY 0.00% rising 2.2%, and Mitsubishi Corp. adding 1.6%.
Euro-angst
Asia’s early gains followed a slump for U.S. stocks Tuesday, after Moody’s Investor Service downgraded Ireland’s debt to junk status.
Moody’s said there was a “growing possibility” that, after the current support program from the European Union and International Monetary Fund ends at year-end 2013, Ireland is likely to need further rounds of official financing before it returns to the private market. Read more on Moody’s downgrade of Ireland.
The latest turn in the euro-zone debt crisis erased a small rally for U.S. stocks triggered by minutes of the Federal Reserve’s latest meeting. The Federal Reserve minutes showed a minority of members supported providing extra stimulus for the economy. Read more on the Fed minutes.
While most financial stocks rebounded in Japan, gains moderated through the morning session, with Nomura Holdings Inc. JP:8604 +0.52% NMR -0.62% , Bank of Yokohama Ltd. JP:8332 +1.01% BKJAY -1.57% and Mitsubishi UFJ Financial Group Inc. JP:8306 +0.25% MTU -0.40% each rising 0.8%. JP:8601 +0.29%
Banking stocks in Sydney trading edged mostly higher in choppy trading, with Australia & New Zealand Banking Group AU:ANZ +0.47% ANZBY -1.33% adding 0.7%, and Macquarie Group Ltd. AU:MQG +0.89% MQBKY -4.65% stemmed some of the previous session’s losses to add 1.0%.
Some Australian retailers sagged, however, after an index of consumer sentiment fell to its lowest level in two years. See report on drop in Australia’s consumer sentiment.
Shares in Harvey Norman Ltd. AU:HVN -2.02% HNORY 0.00% dropped 2.0%, and department-store retailer David Jones Ltd. AU:DJS -1.01% DJNSY 0.00% was off by 1.0%.
Virginia Harrison is a MarketWatch reporter based in Sydney.
