Stock market today: Asia shares gain after Wall St rally as investors pin hopes on China stimulus
Shares are mostly higher in Asia after Wall Street got back to climbing following more encouraging profit reports and the latest signal that inflation is loosening its chokehold on the economy
BANGKOK — Shares were mostly higher in Asia on Monday after Wall Street got back to climbing following more encouraging profit reports and the latest signal that inflation is loosening its chokehold on the economy.
Sentiment also has been boosted by revived hopes for more stimulus from Beijing for the sluggish Chinese economy. Chinese factory activity contracted in July as export orders shrank, a survey showed, adding to pressure on the ruling Communist Party to reverse an economic slowdown.
A purchasing managers’ index issued by the national statistics agency and an industry group improved to 49.3 from June’s 49 on a 100-point scale but was below the 50-point level that shows activity contracting.
“The PMI surveys suggest that China’s economic recovery continued to lose momentum in July,” Julian Evans-Pritchard of Capital Economics said in a commentary. “Looking forward, policy support is needed to prevent China’s economy from slipping into a recession, not least because external headwinds look set to persist for a while longer."
The Hang Seng in Hong Kong rose 1.5% to 20,208.78 while the Shanghai Composite index advanced 0.6% to 3,296.58.
Tokyo's Nikkei 225 index was up 1.1% at 33,133.39. In Seoul, the Kospi climbed 0.7% to 2,626.86.
Australia's S&P/ASX 200 edged 0.1% lower, to 7,399.00 and the SET in Bangkok was up 0.6%. The Sensex in India was little changed.
On Friday, the S&P 500 rose 1% to 4,582.23, closing out its ninth winning week in the last 11. The Dow added 0.5% to 35,459.29 and the Nasdaq climbed 1.9% to 14,316.66
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