Stocks across Asia rallied Thursday despite worries about U.S.
economic growth, while China shares took a breather having gained
24% since early February.
Markets were higher across the region even though U.S. stocks
fell Wednesday.
"At some point this year shares are likely to see a decent
correction, with the anticipation of the Fed's first interest rate
hike likely to provide the trigger," said Shane Oliver, head of
investment strategy at AMP Capital. "However, the trend in shares
is likely to remain up," he said, citing economic growth and
further easing in Europe, Japan, China and Australia, and only
gradual tightening in the U.S., as reasons.
Weak economic data in the U.S. on Wednesday added to concerns
about growth there, but encouraged investors hoping for a later
U.S. rate increase. Mr. Oliver said that eurozone, Japanese and
North Asian shares are likely to outperform.
The Shanghai Composite Index was flat after a whirlwind rally
this year. Margin trading--the use of borrowed money for
trading--surpassed 1 trillion yuan for the first time yesterday,
according to the Shanghai Stock Exchange.
Australia's S&P ASX 00 was up 0.5% after trade figures came
in line with expectations. Australia posted a seasonally adjusted
trade deficit of A$1.3 billion in February, compared with a deficit
of A$1.0 billion in January, the statistics bureau said Thursday.
It was the biggest shortfall since September 2014.
In Hong Kong, telecommunications firm PCCW Ltd. jumped 5.1%,
after its subsidiary Hong Kong Television Entertainment Co.
received a 12-year free-to-air license from the local
government.
Write to Chao Deng at Chao.Deng@wsj.com
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