Hong Kong: Asian markets extended gains on Tuesday, with investors buoyed by a string of upbeat global economic data as well as signs that a US-led strike on Syria could be averted.
Buying sentiment was also boosted by a rally on Wall Street, while Japanese traders were still on a high after Tokyo’s successful bid to host the Olympic Games in 2020.
Tokyo was up 1.54 per cent, or 218.13 points, at 14,423.36, adding to its 2.48 per cent rise on Monday as Olympic-related firms enjoyed further buying.
Sydney advanced 0.38 per cent, or 19.7 points, to close at 5,201.2, while Seoul added 0.98 per cent, or 19.39 points, to 1,994.06.
Shanghai rose 1.15 per cent, or 25.47 points, to 2,237.98, boosted by news that industrial production in China had expanded in August at its fastest rate in more than a year. Hong Kong climbed 0.99 per cent, or 226.00 points to 22,976.65.
The gains follow strong trade figures Monday and add to recent results pointing to a pick-up in the world’s number two economy and key driver of global growth.
Also Monday Japan said its economy expanded at a faster pace in the April-June quarter than originally estimated, fuelling hopes that years of anaemic growth could be coming to an end.
The positive numbers follow last week’s figures on manufacturing from China, Europe and the United States that all pointed to an increase in activity.
“Prospects for a global economic rebound have allowed for more confidence in equities markets, which has made the upside direction clearer,” SMBC Nikko Securities general manager of equities Hiroichi Nishi told Dow Jones Newswires.
Investors also welcomed a possible breakthrough in the Syria crisis after Russia proposed a plan to avert a US-led strike on Damascus by securing a deal for the regime to destroy its chemical weapons.
US President Barack Obama said the move could be a “significant breakthrough”, easing concerns of an attack that many analysts fear could lead to a wider conflict in the Middle East.
Wall Street welcomed the latest events. The Dow rose 0.94 per cent, the S&P 500 increased 1.00 per cent and the Nasdaq climbed 1.26 per cent.
Oil prices retreated as supply worries softened. New York’s main contract, West Texas Intermediate for delivery in October, fell $1.02 to $108.50 in afternoon trade, while Brent North Sea crude for October was 80 cents lower at $112.92.
In currency trade the dollar bought 100.05 yen, compared with 99.69 yen in New York on Monday.
The euro fetched 132.54 yen compared with 132.10 yen while it was at $1.3247 from $1.3254.
There were also advances in emerging markets as a weaker-than-expected US jobs report on Friday tempered expectations the Federal Reserve will start to wind down its stimulus programme this month.
Mumbai, which was closed for a public holiday Monday, closed 3.77 per cent higher, Jakarta added 3.98 per cent and Manila ended up 1.54 per cent, or 92.68 points, at 6,089.72.
Developing nations around the world slumped last month on fears of an end to the Fed’s bond-buying, which has been credited with fuelling an investment splurge in their economies since over the past year.
Gold cost $1,372.04 an ounce at 1100 GMT compared with $1,385.42 late on Monday.
