Asian-Pacific Shares Finish Higher; Nikkei Rises Despite Disappointing GDP ReportAustralian shares closed higher for a third straight session, led by gains in mining and energy sector stocks as commodity prices strengthened.
The major Asia-Pacific stock indexes settled higher on Tuesday, led by a jump in Taiwan shares. Japanese shares jumped as investors shrugged off disappointing GDP data. South Korean stocks climbed as more economies reopened. Hong Kong stocks rose for a third day as energy and telecom firms gained.
In China, stocks were supported by energy and transportation gains. Gold and energy stocks lifted Australia shares higher as commodity prices firmed on a weaker U.S. Dollar.
Cash Market Performance
In the cash market, Japan’s Nikkei 225 Index settled at 28406.84, up 582.01 or +2.09%. Hong Kong’s Hang Seng Index finished at 28593.81, up 399.72 or +1.42% and South Korea’s KOSPI Index closed at 3173.05, up 38.53 or +1.23%.
In China, the benchmark Shanghai Index settled at 3529.01, up 11.40 or +0.32% and in Australia, the S&P/ASX 200 Index finished at 7066.00, up 42.40 or +0.60%.
Japanese Shares Jump as Investors Shrug Off GDP Data to Buy Battered Stocks
Japanese shares jumped on Tuesday as investors shrugged off data showing the economy slipped back into contraction, and picked up stocks whose valuations took a beating in recent sell-offs.
Japan’s economy shrank more than expected in the first quarter as a slow vaccine rollout and new COVID-19 infections hit spending on items such as dining out and clothes.
Shares of department stores rose after investors bought them back on expectations that local coronavirus infections would ease soon as the government has imposed restrictions and rolled out a mass vaccination program.
South Korean Stocks Climb as More Economies Reopen
South Korean shares rose on Tuesday as investors weighed spiking cases of coronavirus in some parts of Asia against the accelerating pace of economic growth as more economies reopen in the west.
The market has been repeatedly going up and down over the past few sessions in a boxed-in level, and such narrow range could continue for the next few days as the extent of economic recovery varies across the globe, said Huh Jae-hwan, an analyst with Eugene Investment & Securities.
Hong Kong Stocks Rise for Third Day as Energy, Telecom Firms Gain
Hong Kong Stocks climbed for a third straight session on Tuesday, buoyed by gains in energy and telecom shares, while downbeat China and U.S. data eased fears of policy tightening.
Leading the gains, the Hang Seng energy index and the Hang Seng telecommunications index advanced 3.4% and 1.8%, respectively.
China Mobile ended up 2.7%, after the company approved plans for a potential HK$47.08 billion ($6.06 billion) listing in Shanghai.
Data on Monday showed China’s factories slowed their output growth in April and retail sales significantly missed expectations as officials warned of new problems affecting the recovery in China.
Gold, Energy Stocks Lift Australia Shares Higher as Commodity Prices Firm
Australian shares closed higher for a third straight session on Tuesday, led by gains in heavyweight mining and energy sector stocks as commodity prices strengthened.
Gold stocks rose 2%, hitting a more than four-month high as bullion prices soared on rising inflationary pressures and dollar weakness, with country’s biggest gold miner Newcrest Mining gaining 1.1%, after touching a 6-month high earlier in the day.
Energy stocks rose for a fourth straight session and closed up 1.6%, tracking an uptick in oil prices on hopes of a solid recovery in fuel demand following the reopenings of the U.S. and European economies.
For a look at all of today’s economic events, check out our economic calendar.