Investing.com - Asian stocks rose on Tuesday after weak retail sales data out of the U.S. sparked talk the Federal Reserve will stimulate the economy via monetary easing measures, which would send stocks around the world rising.
During Asian trading on Tuesday, Hong Kong's Hang Seng Index was up 1.58%, Australia's S&P/ASX200 was up 0.79%, while Japan’s Nikkei 225 Index was up 0.61%.
Poor sales figures out of the U.S. fueled already growing talk the Federal Reserve will jolt the economy via a fresh round of quantitative easing, which are bond buybacks from banks that inject liquidity into the economy, pushing up stock prices in the process to encourage investing and hiring.
The Commerce Department reported U.S. retail sales dropped by a seasonally adjusted 0.5% in June, far worse than market calls for a 0.2% gain.
The softer-than-expected numbers came in wake of a 0.2% decline in May and marked the first time retail sales had dropped for three consecutive months since 2008.
Core retail sales, which are stripped of automobile sales, contracted for a second consecutive month, dropping 0.4%, defying market expectations for a gain of 0.1%, after falling by 0.4% in May.
Consumer spending accounts for about 70 percent of total U.S. economic output, and poor retail sales cemented expectations for Federal Reserve intervention of some sort.
Federal Reserve Chairman Ben Bernanke will appear before Congress later Tuesday and the market was on edge ahead of then.
China, meanwhile, has reported cooling growth rates and is expected to stimulate its economy as well, which bolstered Asian stock prices further.
China's gross domestic product grew 7.6% in the second quarter, and while largely in line with expectations, the figure still fell well below the more robust 8.1% rate posted in the first quarter of this year.
The International Monetary Fund tempered the buying spree.
The fund reported earlier that it was cutting its global growth forecast for 2013 to 3.9% from 4.1%, dampening the mood somewhat.
In Hong Kong, top gainers included Sino Land, up 2.80%, CNOOC, up 2.59%, and Cathay Pacific Air, up 2.42%.
In Australia, top gainers included Intrepid Mines, up 5.45%, Perseus Mining, up 5.33%, and Lynas Corp., up 4.71%.
European stock futures indicated a higher opening.
France's CAC 40 futures pointed to a gain of 0.72%, while Germany's DAX 30 futures signaled a gain of 0.65%. Meanwhile, in the U.K., the FTSE 100 futures indicated a gain of 0.38%.
Dow Jones Industrial Average futures were up 0.40% while the S&P 500 futures were up 0.38%.
Later Tuesday, the U.S. will publish its latest consumer price index as well as reports on the country's capacity utilization rate and industrial production.
All eyes will focus on Federal Reserve Chairman Ben Bernanke, who will testify on the U.S. central bank’s monetary policy decisions before the Senate Banking Committee in Washington.
During Asian trading on Tuesday, Hong Kong's Hang Seng Index was up 1.58%, Australia's S&P/ASX200 was up 0.79%, while Japan’s Nikkei 225 Index was up 0.61%.
Poor sales figures out of the U.S. fueled already growing talk the Federal Reserve will jolt the economy via a fresh round of quantitative easing, which are bond buybacks from banks that inject liquidity into the economy, pushing up stock prices in the process to encourage investing and hiring.
The Commerce Department reported U.S. retail sales dropped by a seasonally adjusted 0.5% in June, far worse than market calls for a 0.2% gain.
The softer-than-expected numbers came in wake of a 0.2% decline in May and marked the first time retail sales had dropped for three consecutive months since 2008.
Core retail sales, which are stripped of automobile sales, contracted for a second consecutive month, dropping 0.4%, defying market expectations for a gain of 0.1%, after falling by 0.4% in May.
Consumer spending accounts for about 70 percent of total U.S. economic output, and poor retail sales cemented expectations for Federal Reserve intervention of some sort.
Federal Reserve Chairman Ben Bernanke will appear before Congress later Tuesday and the market was on edge ahead of then.
China, meanwhile, has reported cooling growth rates and is expected to stimulate its economy as well, which bolstered Asian stock prices further.
China's gross domestic product grew 7.6% in the second quarter, and while largely in line with expectations, the figure still fell well below the more robust 8.1% rate posted in the first quarter of this year.
The International Monetary Fund tempered the buying spree.
The fund reported earlier that it was cutting its global growth forecast for 2013 to 3.9% from 4.1%, dampening the mood somewhat.
In Hong Kong, top gainers included Sino Land, up 2.80%, CNOOC, up 2.59%, and Cathay Pacific Air, up 2.42%.
In Australia, top gainers included Intrepid Mines, up 5.45%, Perseus Mining, up 5.33%, and Lynas Corp., up 4.71%.
European stock futures indicated a higher opening.
France's CAC 40 futures pointed to a gain of 0.72%, while Germany's DAX 30 futures signaled a gain of 0.65%. Meanwhile, in the U.K., the FTSE 100 futures indicated a gain of 0.38%.
Dow Jones Industrial Average futures were up 0.40% while the S&P 500 futures were up 0.38%.
Later Tuesday, the U.S. will publish its latest consumer price index as well as reports on the country's capacity utilization rate and industrial production.
All eyes will focus on Federal Reserve Chairman Ben Bernanke, who will testify on the U.S. central bank’s monetary policy decisions before the Senate Banking Committee in Washington.