TOKYO: Asian stocks shrugged off a drop in Wall Street and hovered near three-year highs on Monday,with China taking the lead after data showed a robust jump in profits earned by industrial firms in the world’s second-largest economy.
The dollar traded near six-months peaks against a basket of major currencies as the euro continued to sag.Profits earned by Chinese industrial firms rose 17.9 percent in June to 588.08 billion yuan ($94.98 billion) from a year earlier, up sharply from an 8.9 percent rise in May, the National Bureau of Statistics said.
Recent data have reinforced market expectations that the Chinese economy is powering through its recent soft patch as the government uses targeted stimulus measures to support growth.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2 percent, close to a three-year high of 509.23 scaled on Friday.
China’s CSI300 jumped 2.3 percent and the Hang Seng climbed 0.8 percent. Tokyo’s Nikkei, which hit a six-month closing high Friday, was up 0.5 percent.
Funds from Middle Eastern and Asian investors were trickling in again as the Muslim fasting month ends, helping to shore up regional stocks, said Soichiro Monji, chief strategist at Daiwa SB Investments in Tokyo.
“Geopolitical concerns remain as the conflict in the Ukraine does not look like it will end soon, but there is some relief spreading that the impact will be contained,” he said.
The focus turned to whether this week’s run of U.S. data would be strong enough to keep fueling risk appetite.Upcoming U.S. indicators include the Case-Shiller price index on Tuesday, second-quarter GDP due on Wednesday and non-farm payrolls on Friday.
Source : APP