By Kana Nishizawa - Jul 17, 2012 5:48 AM GMT+0400
Asian stocks rose amid optimism governments from China to the U.S. will stimulate the world’s largest economies, overshadowing the International Monetary Fund’s decision to cut its 2013 global growth forecast.
The MSCI Asia Pacific Index (MXAP) rose 0.5 percent to 116.34 as of 10:42 a.m. in Tokyo, reversing an earlier loss of 0.2 percent. More than twice as many stocks rose as fell. The gauge increased yesterday after Premier Wen Jiabao said China will increase measures to support growth in the world’s second- largest economy.
“Hopes of global monetary easing and stimulus measures are preventing investors from becoming too pessimistic about the future, keeping the market from a sharp decline,” said Koji Toda, chief fund manager at Resona Bank Ltd. in Tokyo, which oversees about 15 trillion yen ($190 billion). “The global slowdown is causing investor concern about corporate earnings and equity markets.”
Federal Reserve Chairman Ben S. Bernanke will deliver his semi-annual report on the economy to the House Financial Services Committee tomorrow amid specualation he will hint at further monetary easing.
Japan’s Nikkei 225 Stock Average rose 0.4 percent after reopening from a holiday yesterday.Australia’s S&P/ASX 200 Index (AS51) rose 0.7 percent. Singapore’s Straits Times Index advanced 0.7 percent after the island state’s export growth unexpectedly quickened in June.
Hong Kong’s Hang Seng Index gained 1.5 percent, while China’s Shanghai Composite Index retreated 0.1 percent. South Korea’s Kospi Index advanced 0.6 percent.
To contact the reporter on this story: Kana Nishizawa in Hong Kong atknishizawa5@bloomberg.net.
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net
