Asian shares rise on strong Chinese trade data

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Asian Stock Markets
Us Gains Pushes Higher Asian Shares

Asian stocks ended broadly higher on Tuesday, aided by hopes that US interest rates would stay low for longer.

Trading volumes were thin in the absence of fresh cues from Wall Street, which was closed overnight for a holiday.

Chinese shares rallied after government data showed the country’s exports grew more than expected in August. The benchmark Shanghai Composite index jumped 54.73 points, or 1.51 per cent, to 3,676.59, while Hong Kong’s Hang Seng index ended up 0.73 per cent at 26,353.63.

Chinese exports advanced 25.6 per cent year-on-year in August, bigger than the economists’ forecast of 17.1 per cent and July’s 19.3-per-cent increase.

Imports increased 33.1 pet cent annually after rising 28.1 per cent in July. Economists had forecast an increase of 26.8 per cent.

As a result, the trade balance showed a surplus of 58.34 billion dollars, which was above the expected level of 51.05 billion dollars.

Japanese shares rose on hopes the Liberal Democratic Party will compile additional economic stimulus to recover from the continued impact of the virus.

The Nikkei average climbed 256.25 points, or 0.86 per cent, to 29,916.14, after having climbed above the psychological barrier of 30,000 points earlier in the day for the first time in five months. The broader Topix index ended 1.09 per cent higher at 2,063.38.

Heavyweight SoftBank Group soared almost 10 per cent on news it is acquiring a 4.5-per-cent stake of Deutsche Telekom AG in an equity share swap.

Australian markets ended little changed with a positive bias after the Reserve Bank of Australia left benchmark lending rate and the three-year Australian government bond yield target unchanged at 10 basis points, as widely expected.

Investors also digested data showing that the services sector in the country contracted in August. Weaker iron ore prices weighed on the mining sector, with Rio Tinto and Fortescue Metals Group losing 2-3 per cent.

Energy stocks eked out modest gains as oil prices traded mixed in Asian trade amid bargain hunting following recent losses. Banks ended narrowly mixed while gold miners Evolution and Newcrest ended down more than 1 per cent.

Seoul stocks fell amid a lack of directional cues from Wall Street. The benchmark Kospi dropped 15.91 points, or half a per cent, to 3,187.42. Technology heavyweight Samsung Electronics declined 1.6 per cent, SK Hynix dropped 1.4 per cent and internet portal operator Naver lost 2.1 per cent.

On the positive side, chemical firm LG Chem rose more than 1 per cent.

New Zealand shares edged up in quiet trading, with the benchmark NZX-50 index rising 21.96 points, or 0.17 per cent, to 13,321.99. Pushpay Holdings jumped 3.4 per cent, while Sky Network Television fell 2.3 per cent on profit-taking, after having jumped 23 per cent last week.

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