Asian stocks rise amid upbeat data

Bearing China, most of the regional benchmarks add decent gains
The Asian stocks recorded decent gains today as strong economic data along with a modest retreat in the US dollar pepped up the sentiments. Positive trade data from China supported the sentiments, notwithstanding the weak closing in Wall Street in the overnight trades. The commodity prices were mostly higher. Markets also eyed an impressive undertone in the Dow futures, which gained more than 100 points in the electronic session, indicating that the US markets might record some smart gains at the open today. However, the dollar rose in the late trades as the central banking action in Europe drew closer.

The Japanese stocks surged on better-than-expected GDP data for the first quarter. The country's Cabinet Office announced that the gross domestic product expanded by an annualized 5.0% in the first quarter of 2010. That was better than last month's preliminary reading for a 4.90% gain. On quarter as well, GDP was unrevised at 1.2% higher, shrugging off forecasts for a 1.0% increase. This, clubbed with a slight weakening in Japanese Yen made the benchmark Nikkei 225 Index advanced 103.52 points, or 1.10%, to 9,543, while the broader Topix index of all First Section issues was up 6.42 points, or 0.75%, to 857.
Further on the economic front, the Cabinet Office revealed that consumer sentiment in the country improved for the fifth consecutive month in May. The consumer confidence index rose to 42.7 from 42.1 in April. Households' consumer confidence also improved in May to 42.8 from 42 in April. Economists had expected the index to remain unchanged at 42. The survey was carried out on May 15 among 6,720 households. Within the households' sentiment index, the gauge for overall livelihood rose to 43 from 42.4. Income growth stood at 41.1, up from 40.4 in April.
The Australian market also jumped in tune with the overall rise in risk appetite and positive Chinese trade data, which augured well for commodities. The benchmark S&P/ASX200 Index rose 50.00 points, or 1.14% and closed at 4,435, while the All-Ordinaries Index ended at 4,448, representing a gain of 45.80 points, or 1.04%.
On the economic front, a report released by the Australian Bureau of Statistics revealed that unemployment rate in the country unexpectedly declined in May to a seasonally adjusted 5.2% from 5.4% reported for the previous month. A year ago, the unemployment rate stood at 5.8%. As per the report, the unemployment rate among males fell to 5% from 5.3%, while that among females slid to 5.3% from 5.5%. Some 600,900 Australians were unemployed by the end of May, a decrease of 25,400 from April.
In China, stocks fell though, not being able to surpass the 2600-mark for the benchmark index as banking and property shares skidded lower on concerns about tightening measures from the country's central bank. The Shanghai Composite Index dropped 21.29 points or 0.82 %, to close at 2,562.58 points. The Shenzhen Component Index fell 124.05 points, or 1.2 %, to end at 10,222.22.
China's exports surged by 48.5 % year on year in May, while the imports climbed 48.3 %, the General Administration of Customs (GAC) announced today. The growth rate for exports was 18.1% points up from the figure for April, and the import growth rate dipped slightly from 49.7 % reported in April.
Experts said the strong growth of exports eased concerns that the European sovereign debt crisis would dent China's economic growth.
Total foreign trade value rose 48.4 % from a year earlier to 243.99 billion U.S. dollars in May. The figure was 10.2 % higher than May 2008 before the global financial crisis began, the statement said.
Further, home prices in 70 large and medium-sized Chinese cities rose by 12.4 % year on year in May, the National Bureau of Statistics (NBS) said in a statement Thursday. The growth rate was 0.4 %age points lower than that of April, as property sales in first-tier cities, including, Beijing, Shanghai and Shenzhen, contracted following a string of government measures to rein in price rises. However, the present levels are still worrisome and some more measures to tame them look on cards in the near term.
In Mumbai, the key benchmark indices extended gains for the second straight day as global markets rose. All the sectoral indices on BSE were in green and good buying was visible in auto, metal, realty and capital goods stocks. As per provisional figures, the BSE 30-share Sensex was up 276.12 points or 1.66% to 16,934.01. The S&P CNX Nifty was up 82.05 points or 1.64% to 5,082.35 as per provisional figures.
In other markets, Hang Seng rose 0.06% while Straits Times surged 1.23% and TSEC added1.56%.
The dollar slipped against the Euro to trade near 1.2100 at one stage but quickly reversed the losses ahead of the interest rate decisions at ECB and BOE. Crude oil continued to ride higher though, breaking above $75 per barrel. Gold slipped as equities went up initially but found a very a good support at $1220 per ounce and moved up.