Asian Stocks Rise as China's Spending Plans Overshadow Data
(Bloomberg) -- Chinese shares traded in Hong Kong advanced a sixth straight session as spending plans unveiled by the government overshadowed data showing a slowdown in factory output and investment. Tokyo stocks nearly erased losses.
The MSCI Asia-Pacific Index gained about 0.2 percent at 4:24 p.m. in Hong Kong, holding near a two year high. The Hang Seng China Enterprises Index rose 1.6 percent, climbing to its highest since March 24. Japan’s Topix almost reversed a loss of 0.6 percent as the yen weakened. India’s benchmark index opened higher Monday after gaining 1.1 percent last week.
China’s President Xi Jinping on Sunday revealed plans to spend $78 billion as part of a globalization initiative and repeated calls for multilateral trade. China’s industrial output rose 6.5 percent in April from a year earlier, compared with economists forecast of 7 percent. Fixed asset investment climbed 8.9 percent in the first four months, less than the 9.1 percent median estimate.
“Like most major markets, the HSCEI is slowly working higher as it tracks Team China’s activities on the mainland.” said Andrew Sullivan, a managing director for sales trading at Haitong International Securities Group Ltd. in Hong Kong. “There is nervousness about mainland markets following last week’s edict not to carry out large scale selling.”
- Hang Seng Index +0.9%, HSCEI +1.6%, Taiex +0.5%
- Shanghai Composite +0.2%, Shenzhen Composite +0.4%
- Australia’s S&P/ASX 200 little changed
- Japan’s Topix little changed, Nikkei down about 0.1%