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- Asian stocks trade in positive territory after encouraging Chinese data.
- Chinese Retail Sales and Industrial Production for August came in better than expected.
- Investors will monitor the preliminary US University of Michigan (UoM) Consumer Confidence survey on Friday.
Asian stocks trade in positive territory on Friday following the stronger-than-expected Chinese data and stimulus measures from the Chinese authorities to boost the economy.
At press time, China’s Shanghai is up 0.28% to 3,135, the Shenzhen Component Index rises 0.11% to 10,208, Hong Kong’s Hang Sang surges 1.66% to 18,347, South Korea’s Kospi climbs 1.27% and Japan’s Nikkei surges 1.28%.
Chinese equities edge higher as investors are more optimistic about economic growth in China, the world’s second-largest economy. The National Bureau of Statistics (NBS) revealed on Friday, that Chinese Retail Sales for August improved 4.6% YoY compared to the previous reading of 2.5%, exceeding market expectations. In the meantime, the nation’s Industrial Production rose to 4.5% in August from 3.7% in July, above market expectations of 3.9%.
Furthermore, the Chinese central bank lowered the reserve requirements for banks by 25 basis points (bps) for a second time this year to boost lending and stabilize the economy.
Nikkei hit a two-month high by surging around 1.28%. Yoshitaka Shindo, the newly appointed economy minister of Japan, stated on Thursday that he will implement all potential economic policy measures and added that he seeks virtuous growth and equitable distribution of wealth while striving to achieve fiscal reform.
Market players will keep an eye on the release of the US Empire State Manufacturing Index, Industrial Production, and the University of Michigan Consumer Confidence survey. These figures could offer hints about the peak interest rate by the Federal Reserve (Fed) for the rest of the year ahead of the Fed meeting next week.
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