Investing.com - Asian stocks rose on Thursday after Chinese inflation figures came in close to expectations, which were low in the first place, fueling talk Beijing may loosen economic policy.
During Asian trading on Thursday, Hong Kong's Hang Seng Index was up 0.84%, Australia's S&P/ASX200 was up 0.16%, while Japan’s Nikkei 225 Index was up 0.75%.
In China, inflation rates hit a 30-month low in July.
The country's consumer price index rose 1.8% on year in July, down from a 2.2% gain in June.
Analysts were expecting the index to climb a tad lower by 1.7%.
The numbers rekindled talk that China has plenty of room to stimulate its economy and resume faster growth rates.
Stocks saw further demand on ongoing talk that the European Central Bank and the U.S. Federal Reserve will jolt their own economies with stimulus measures to spur more recovery.
The Federal Reserve will likely announce plans to resume its quantitative easing program in the coming weeks, according to many market observers.
Under quantitative easing, the Fed buys assets from banks like Treasury holdings or mortgage-backed securities, pumping the economy full of liquidity to push down interest rates, weakening the dollar in the process, which makes stocks attractive.
The European Central Bank is expected to announce similar measures, namely sovereign debt purchases in the open market, which sparked demand for risk around the world.
Weak indicators continued to hit the wire in Europe, which further fueled calls for ECB intervention.
German industrial production fell 0.9% in June, slightly worse than analysts' calls for a decline of 0.8%, and down from an upwardly revised 1.7% gain in May.
The data came on the heels of more bad news out of Germany.
German factory orders fell 1.7% in June, well above expectations for a 1.0% decline.
Meanwhile, Italy reported that its gross domestic product contracted by 0.7% in the second quarter, worse than expectations for a 0.6% contraction.
Stocks also saw demand on stronger-than-expected unemployment figures out of Australia.
The Australian Bureau of Statistics reported that the country's unemployment rate fell to a seasonally adjusted 5.2% in July from 5.3% in June, whose figure was revised up from 5.2%.
Analysts had expected Australian unemployment rate to hit 5.3% last month.
New Zealand, meanwhile, saw its unemployment rate rise.
Statistics New Zealand said that the country's unemployment rate rose to a seasonally adjusted 6.8% in the second quarter, a two-year high, up from 6.7% in the first quarter.
Analysts had expected New Zealand's unemployment rate to fall to 6.5% in the last quarter.
In Hong Kong, top gainers include Esprit Holdings, up 4.91%, China Life Insurance Co., up 2.48%, and CHALCO, up 2.39%.
In Australia, top gainers included Alumina, up 6.57%, Bathhurst Resources, up 6.56%, and NRW Holdings, up 4.64%.
European stock futures indicated a higher opening.
France's CAC 40 futures pointed to a gain of 0.34%, while Germany's DAX 30 futures pointed to a gain of 0.28%. Meanwhile, in the U.K., the FTSE 100 futures indicated a gain of 0.19%.
Dow Jones Industrial Average futures were up 0.24% while the S&P 500 futures were up 0.17% as well.
Later Thursday, the ECB will publish its monthly bulletin, which gives a detailed analysis of current and future economic conditions from the bank's perspective.
The U.S. is to publish its weekly report on initial jobless claims and data on the trade balance.
The Bank of Japan will announce its decision on interest rates.
During Asian trading on Thursday, Hong Kong's Hang Seng Index was up 0.84%, Australia's S&P/ASX200 was up 0.16%, while Japan’s Nikkei 225 Index was up 0.75%.
In China, inflation rates hit a 30-month low in July.
The country's consumer price index rose 1.8% on year in July, down from a 2.2% gain in June.
Analysts were expecting the index to climb a tad lower by 1.7%.
The numbers rekindled talk that China has plenty of room to stimulate its economy and resume faster growth rates.
Stocks saw further demand on ongoing talk that the European Central Bank and the U.S. Federal Reserve will jolt their own economies with stimulus measures to spur more recovery.
The Federal Reserve will likely announce plans to resume its quantitative easing program in the coming weeks, according to many market observers.
Under quantitative easing, the Fed buys assets from banks like Treasury holdings or mortgage-backed securities, pumping the economy full of liquidity to push down interest rates, weakening the dollar in the process, which makes stocks attractive.
The European Central Bank is expected to announce similar measures, namely sovereign debt purchases in the open market, which sparked demand for risk around the world.
Weak indicators continued to hit the wire in Europe, which further fueled calls for ECB intervention.
German industrial production fell 0.9% in June, slightly worse than analysts' calls for a decline of 0.8%, and down from an upwardly revised 1.7% gain in May.
The data came on the heels of more bad news out of Germany.
German factory orders fell 1.7% in June, well above expectations for a 1.0% decline.
Meanwhile, Italy reported that its gross domestic product contracted by 0.7% in the second quarter, worse than expectations for a 0.6% contraction.
Stocks also saw demand on stronger-than-expected unemployment figures out of Australia.
The Australian Bureau of Statistics reported that the country's unemployment rate fell to a seasonally adjusted 5.2% in July from 5.3% in June, whose figure was revised up from 5.2%.
Analysts had expected Australian unemployment rate to hit 5.3% last month.
New Zealand, meanwhile, saw its unemployment rate rise.
Statistics New Zealand said that the country's unemployment rate rose to a seasonally adjusted 6.8% in the second quarter, a two-year high, up from 6.7% in the first quarter.
Analysts had expected New Zealand's unemployment rate to fall to 6.5% in the last quarter.
In Hong Kong, top gainers include Esprit Holdings, up 4.91%, China Life Insurance Co., up 2.48%, and CHALCO, up 2.39%.
In Australia, top gainers included Alumina, up 6.57%, Bathhurst Resources, up 6.56%, and NRW Holdings, up 4.64%.
European stock futures indicated a higher opening.
France's CAC 40 futures pointed to a gain of 0.34%, while Germany's DAX 30 futures pointed to a gain of 0.28%. Meanwhile, in the U.K., the FTSE 100 futures indicated a gain of 0.19%.
Dow Jones Industrial Average futures were up 0.24% while the S&P 500 futures were up 0.17% as well.
Later Thursday, the ECB will publish its monthly bulletin, which gives a detailed analysis of current and future economic conditions from the bank's perspective.
The U.S. is to publish its weekly report on initial jobless claims and data on the trade balance.
The Bank of Japan will announce its decision on interest rates.