Investing.com - Asian stock markets were broadly higher during late Asian trade on Tuesday, as investors hoped that relentlessly bad data out of the U.S. and China will prompt policy makers to increase efforts to boost their slowing economies.
Gains in Japan were limited as exporters came under pressure after the yen rose to a one-month high against the U.S. dollar and hovered close to an 11-year top against the euro.
During late Asian trade, Hong Kong's Hang Seng Index rallied 1.6%, Australia’s ASX/200 Index climbed 0.9%, while Japan’s Nikkei 225 Index added 0.4%.
U.S. equities ended in the red on Monday after official data showed that retail sales fell by a seasonally adjusted 0.5% in June, confounding expectations for a 0.2% increase, after a 0.2% drop in May.
It was the first time retail sales had dropped in three consecutive months since late 2008.
The data fuelled speculation for another round of easing from the Federal Reserve, ahead of Fed Chairman Ben Bernanke's testimony on the economic outlook to the U.S. Senate on Tuesday and Wednesday.
Hopes for additional stimulus measures from China mounted after Chinese Premier Wen Jiabao said over the weekend that policy makers were likely to introduce measures to boost growth in the second half of the year
The comments followed government data released last week showing China’s second quarter economic growth slowed to a three-year low of 7.6%, compared to growth of 8.1% in the first quarter.
In Tokyo, the Nikkei initially opened lower, coming under pressure by the yen’s strength. But the index turned higher after Japanese Finance Minister Jun Azumi warned about one-sided movements in the currency market.
Despite the comments, shares in Sony dropped 3.4% to hit a three-decade low, while Sharp tumbled 5.7% to hit its lowest level in 34-years.
A strong currency undermines the value of Japanese exporters' overseas profits, and also makes Japanese shares less attractive to investors holding other currencies.
Meanwhile, in Hong Kong, the Hang Seng rallied amid expectations that the People’s Bank of China will cut its reserve requirement ratio for the nation’s banks in the near-term.
Industrial and Commercial Bank of China shares jumped 2.2%, Bank of China Hong Kong rose 2.5%, while index heavyweight HSBC Holdings advanced 1.2%.
Railway stocks were broadly higher after China's National Development and Reform Commission said railway infrastructure investment in the second half could double that in the first half.
China Railway Group surged 5% and China Railway Construction rose 2.8%.
Elsewhere, shares in Australia were higher after minutes the Reserve Bank of Australia’s most recent policy-setting meeting reflected a more positive tone on the Australian economy.
Shares in the financial sector were higher, with ANZ Banking Group climbing 1.9%, Westpac Banking Corporation rising 1.7% and Commonwealth Bank of Australia gaining 1.6%.
Looking ahead, the outlook for European stock markets was higher, ahead of testimony by Federal Reserve Chairman Ben Bernanke, amid speculation over the possibility of more easing from the U.S. central bank.
The EURO STOXX 50 futures pointed to a gain of 0.45% at the open, France’s CAC 40 futures rose 0.55%, London’s FTSE 100 futures added 0.45%, while Germany's DAX futures pointed to a rise of 0.6% at the open.
Later in the day, the ZEW Institute was to release reports on economic sentiment in Germany and the wider euro area. Meanwhile, the U.S. was to publish official data on consumer price inflation, as well as reports on the capacity utilization rate and industrial production.
Gains in Japan were limited as exporters came under pressure after the yen rose to a one-month high against the U.S. dollar and hovered close to an 11-year top against the euro.
During late Asian trade, Hong Kong's Hang Seng Index rallied 1.6%, Australia’s ASX/200 Index climbed 0.9%, while Japan’s Nikkei 225 Index added 0.4%.
U.S. equities ended in the red on Monday after official data showed that retail sales fell by a seasonally adjusted 0.5% in June, confounding expectations for a 0.2% increase, after a 0.2% drop in May.
It was the first time retail sales had dropped in three consecutive months since late 2008.
The data fuelled speculation for another round of easing from the Federal Reserve, ahead of Fed Chairman Ben Bernanke's testimony on the economic outlook to the U.S. Senate on Tuesday and Wednesday.
Hopes for additional stimulus measures from China mounted after Chinese Premier Wen Jiabao said over the weekend that policy makers were likely to introduce measures to boost growth in the second half of the year
The comments followed government data released last week showing China’s second quarter economic growth slowed to a three-year low of 7.6%, compared to growth of 8.1% in the first quarter.
In Tokyo, the Nikkei initially opened lower, coming under pressure by the yen’s strength. But the index turned higher after Japanese Finance Minister Jun Azumi warned about one-sided movements in the currency market.
Despite the comments, shares in Sony dropped 3.4% to hit a three-decade low, while Sharp tumbled 5.7% to hit its lowest level in 34-years.
A strong currency undermines the value of Japanese exporters' overseas profits, and also makes Japanese shares less attractive to investors holding other currencies.
Meanwhile, in Hong Kong, the Hang Seng rallied amid expectations that the People’s Bank of China will cut its reserve requirement ratio for the nation’s banks in the near-term.
Industrial and Commercial Bank of China shares jumped 2.2%, Bank of China Hong Kong rose 2.5%, while index heavyweight HSBC Holdings advanced 1.2%.
Railway stocks were broadly higher after China's National Development and Reform Commission said railway infrastructure investment in the second half could double that in the first half.
China Railway Group surged 5% and China Railway Construction rose 2.8%.
Elsewhere, shares in Australia were higher after minutes the Reserve Bank of Australia’s most recent policy-setting meeting reflected a more positive tone on the Australian economy.
Shares in the financial sector were higher, with ANZ Banking Group climbing 1.9%, Westpac Banking Corporation rising 1.7% and Commonwealth Bank of Australia gaining 1.6%.
Looking ahead, the outlook for European stock markets was higher, ahead of testimony by Federal Reserve Chairman Ben Bernanke, amid speculation over the possibility of more easing from the U.S. central bank.
The EURO STOXX 50 futures pointed to a gain of 0.45% at the open, France’s CAC 40 futures rose 0.55%, London’s FTSE 100 futures added 0.45%, while Germany's DAX futures pointed to a rise of 0.6% at the open.
Later in the day, the ZEW Institute was to release reports on economic sentiment in Germany and the wider euro area. Meanwhile, the U.S. was to publish official data on consumer price inflation, as well as reports on the capacity utilization rate and industrial production.