Asia-Pacific markets rose Wednesday as investors assessed China’s business activity data, with Japan’s Nikkei 225 reversing course to log gains after the country’s central bank raised benchmark interest rates to around 0.25%.
In Japan, the Nikkei 225 index ballooned 575.87 points, or 1.5%, to 39,101.82.
The country’s retail sales climbed 3.7% year on year in June, beating expectations of a 3.2% rise from economists polled by Reuters.
In Hong Kong, the Hang Seng index regained 341.69 points, or 2%, to 17,344.60.
Australia’s second-quarter inflation rose 1% compared to the last quarter, while inflation climbed 3.8% year on year.
June’s inflation rate also came in at 3.8%, in line with expectations and decelerating from the 4% seen in May. Markets climbed to a new record.
A weaker inflation reading could open the possibility of rate cuts from the Reserve Bank of Australia, or at least discourage it from raising rates, a course of action that was discussed at its last monetary policy meeting.
Korean markets recovered their zip, with heavyweight Samsung Electronics jumping 3.58% as the firm reported a whopping 1,458.2% year on year rise in second-quarter operating profit.
CHINA
In Shanghai, the CSI 300 recovered 72.7 points, or 2.2%, to 3,442.08.
China’s factory activity contracted at a slightly faster pace in July, with the official manufacturing purchasing managers’ index standing at 49.4, down from 49.5 in June. This figure, however, beat forecasts from a Reuters poll, which expected the PMI to come in at 49.3.
Separately, China’s securities regulatory commission has replaced vice chairman Fang Xinghai with Li Ming, its inspection bureau chief. Fang has been in the role of CSRC vice chairman since 2015. The state-run Global Times, citing local media, reported that Fang was retiring.
In other markets
In Taiwan, the Taiex index docked 24.22 points, or 0.1%, to 22,199.35.
In Singapore, the Straits Times Index restocked 14.17 points, or 0.4%, to 3,455.94.
In Korea, the Kospi index regained 32.5 points, or 1.2%, to 2,770.69.
In New Zealand, the NZX 50 advanced 14.22 points, or 0.1%, to 12,405.27.
In Australia, the ASX 200 moved sharply higher, 139.16 points, or 1.8%, to 8,092.33.
