Asian shares extend rally, relieved at China growth

Asian shares extend rally, relieved at China growth

SYDNEY: Asian shares rose for a second session on Wednesday as a barrage of Chinese data confirmed the economy had stabilized on the back of government spending and a hot housing market, even if worries about debt continue to mount.The initial reaction was muted with few fireworks in the figures and Shanghai stocks edged up 0.2 percent.MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.4 percent, on top of Tuesday’s 1.4 percent jump.Australian shares firmed 0.4 percent, while Japan’s Nikkei rose 0.2 percent.Chinese gross domestic product expanded 6.7 percent in the year to September, exactly as forecasted. Private investment remained subdued with government spending and property strong.Other data showed retail sales rising a solid 10.7 percent and urban investment 8.2 percent, but industrial output disappointed by growing only 6.1 percent.”The upshot from today’s data is that economic activity seems to be holding up reasonably well, with few signs that a renewed slowdown is just around the corner,” said Julian Evans-Pritchard, China economist at Capital Economics.”Nonetheless, the recent recovery is ultimately on borrowed time given that it has been driven in large part by faster credit growth and a property market boom, both of which policymakers are now working to rein in.”Sentiment had got an early lift from Wall Street which benefited from encouraging corporate earnings. The Dow ended Tuesday up 0.42 percent, while the S P 500 added 0.62 percent and the Nasdaq 0.85 percent.Of the 52 S P 500 companies that have reported results to date for the third quarter, 81 percent had earnings that topped average analyst estimates, according to forecasts collated by Thomson Reuters I/B/E/S.One company seemingly disappointing investors was Intel , which slid 5.4 percent after the bell despite beating expectations on its earnings.POUND UP AMID BREXIT CONFUSIONA report on U.S. consumer prices showed underlying inflation moderated slightly in September to 2.2 percent, leading the market to slightly pare back bets on a December rate hike.Fed fund futures imply around a 65 percent probability of a move, down from 70 percent.Federal Reserve Chair Janet Yellen said last week the U.S. central bank could allow inflation to run above its target.U.S. Treasury yields dipped, in line with their UK…

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