China Growth Data Boost Asian Stock Markets

Asian shares mostly rose after China’s annual economic growth rate came in above market expectations and on speculation the European Central Bank may launch a major stimulus programme.

China’s economy expanded by 7.4% last year, beating forecasts for 7.2%.

The figure marks the country’s weakest growth rate in 24 years but investors were relieved that China’s slowdown was not as severe as thought.

The Shanghai Composite index rallied by 1.8% to close at 3,173.05.

In Hong Kong, the benchmark Hang Seng index closed 0.9% higher at 23,951.16.

“With growth moderating in China, the next phase of the country’s economic prosperity is being mapped out through fiscal regulation and sustained growth targets,” said Evan Lucas, a market strategist at IG.

“Those ideas mean the central government is also looking to moderate rampant speculation, encourage sustained growth for domestic demand and ensure private enterprise becomes more self-sufficient.”

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza