China optimism fuels rise in stocks

on 14/01/2013 08:28:44

Asian stock markets edged up today on optimism that China's economic recovery is firmly taking root.

Analysts expect China's fourth quarter and 2012 growth figures due on Friday to show the world's second biggest economy continuing to bounce back from its worst slump since the 2008 financial crisis.

Sentiment improved last week after Japan announced a $224bn stimulus package to boost its recession- and deflation-mired economy.

A strong economic recovery has eluded Japan for more than 20 years since the bursting of its financial bubble in the early 1990s.

China, meanwhile, reported improving exports and imports last week, a sign of higher demand both inside and outside the country.

Analysts expect to see more signs of improvement when China releases data on Friday, including factory output, investment and retail sales.

Hong Kong's Hang Seng rose 0.4% to 23,346.23. South Korea's Kospi added 0.2% to 2,000.39 and Australia's S&P/ASX 200 advanced 0.2% to 4,719.20.

Mainland China's Shanghai Composite Index rose 0.2% to 2,248.38. Japan's financial markets were closed for a public holiday.