Most of the Asian stock markets closed higher in recent time, after the revelation of better-than-anticipated economic figures from China. The shares in China were higher on the day. The Shanghai Composite surged by 0.29% to 3,263.12 and the Shenzhen Component added by 0.55% to around 10,344.43. The Shenzhen Composite jumped by 0.721% to close at around 1,772.71. In Hong Kong, the Hang Seng index was mainly flat. China said its economy amplified by 6.4% in the first-quarter of 2019, surpassing analysts’ anticipations. The Reuters poll forecasted the country’s GDP (gross domestic product) will increase by 6.3% year-on-year in the first 3 Months of the year. China surged by 6.4% since the previous year in the fourth-quarter of 2018 and by 6.8% in the first quarter of the last year.
In a note after the data release, the economists from Australia and New Zealand Banking Group stated, “China’s high incidence economic indicators verify that development is bottoming out. As the progress momentum of the Chinese economy advances, we feel that lawmakers would re-assess the requirement for further stimulus.” The Australian dollar changed at $0.7199 after an earlier decline of $0.7151. Apparently, China is Australia’s biggest joint trading partner, as per to the new data from Australia’s DFAT (Department of Foreign Affairs and Trade).
On a similar note, recently, strategist predicted that fading worries of a “rough landing” for the Chinese economy can push stocks higher. Reportedly, China’s economy seems increasingly set to avert a “hard landing” and that can help in pushing the country’s stocks higher for the rest of 2019, as per to Stefan Hofer, CIS at LGT Bank. Apprehensions for a slowdown in the second largest economy globally increased in 2018. The growth was declined to its worst rate in 28 Years and equities tanked in the middle of pessimism stoked by fears over increase in the trade war amid the U.S. and China.