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Asian stocks gain on hopes for Chinese stimulus; Nikkei down 0.01%

Published 10/02/2012, 11:11 PM
Updated 10/02/2012, 11:13 PM
Investing.com - Asian stocks rose on Wednesday after talk China may take steps to stimulate its economy in wake of a series of soft output data and cooling growth rates.

Talk of Chinese stimulus offset uncertainty surrounding Spain's reported plans to request a sovereign bailout.

During Asian trading on Wednesday, Hong Kong's Hang Seng Index was up 0.52%, Australia's S&P/ASX200 was up 0.19%, while Japan’s Nikkei 225 Index was down 0.01%.

The HSBC China Manufacturing purchasing managers index recently came to 47.9 for September, up slightly from 47.6 in August.

A reading of 50 separates expansion and contraction.

Official Chinese data painted a similar picture.

China's official factory purchasing managers' index hit 49.8 in September, up from 49.2 in August, according to the country's National Bureau of Statistics.

The official numbers also missed the 50 threshold separating expansion and contraction.

Chinese monetary authorities have said they would consider stimulus measures such as cuts to interest rates or to banking reserve requirements, which sparked some demand for stocks in Asian bourses Wednesday.

Meanwhile in Europe, a Reuters report that Spain may request a bailout in the coming days bolstered stocks across the globe.

A bailout could open the door for the European Central Bank to buy sovereign Spanish debt carrying maturities of up to three years, which would lower borrowing costs in the crisis-weary country and spark relief-buying in global stock markets.

Yet until Spain requests a bailout or rejects plans to do so, uncertainty will keep some investors in a wait-and-see mode, largely holding out in safe-haven dollar positions.

European policymakers are due to hold a summit later this month.

In Hong Kong, top gainers included Cathay Pacific Air, up 3.57%, CCB, up 1.67%, and New World Development, up 1.58%.

In Australia, top gainers included Bathurst Resources, up 8.64%, Discovery Metals, up 5.15%, and Gindalbie Metals, up 5.08%.

European stock futures indicated a lower opening.

France's CAC 40 futures pointed to a loss of 0.25%, while Germany's DAX 30 futures pointed to a loss of 0.18%. Meanwhile in the U.K., FTSE 100 futures were down 0.23%.

Dow Jones Industrial Average futures pointed to a loss of 0.18% while the S&P 500 futures were down 0.21%.

Later Wednesday, the eurozone is to release revised data on service sector activity, as well as official data on retail sales.

Also on Wednesday, the U.S. is to produce industry data on non-farm employment change, followed by a report by the Institute for Supply Management on non-manufacturing activity, as well as government data on crude oil stockpiles.







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