OSH Oil Search Limited

Asian shares were broadly higher early Wednesday, tracking overnight gains on Wall Street, while key data out of China met market expectations.

The world's second-biggest economy expanded 6.7% in the third quarter from a year earlier, matching growth in the previous quarter, official data showed. The figure was also in line with a forecast by economists polled by The Wall Street Journal.

Meanwhile, September retail sales data jumped 10.7% from a year earlier, matching expectations, though industrial output, which gained 6.1% from a year earlier, was below a 6.4% forecast.

The numbers show that the Chinese government's capacity control measures are working, helping to boost prices charged by manufacturers, said Alex Wong, director of asset management at Ample Capital.

"In terms of pricing power, China manufacturers are in a better position now," he said.

China's equities markets held on to gains after the data showed the nation's economy was stable. The Shanghai Composite Index was up 0.3%, while the Shenzhen Composite Index added 0.1%. Hong Kong's Hang Seng Index, however, was down 0.1%, retreating after Tuesday's 1.6% gain.

Investors "don't seem too excited but they are cautious," Mr. Wong said, ahead of a European Central Bank meeting on Thursday.

Analysts are watching whether the ECB will continue to buy €80 billion ($88 billion) per month of mainly government bonds after March next year, though the ECB is widely expected to leave its policy mix unchanged for a fifth straight meeting.

China's data is crucial not only for Asia, but has wider implications on the U.S. interest-rate policy. Data last week showed that Chinese exports fell more steeply than expected in September, highlighting a persistent weakness in global demand, but some analysts are more optimistic.

"I think the Fed has become more sanguine about potential external shocks emanating from China recently (especially since the first quarter)," said Bill Bowler, an equity sales trader at Forsyth Barr Asia.

Overnight, U.S. stocks rose following another batch of better-than-expected corporate results, with the Dow Jones Industrial Average closing up 0.4%.

Elsewhere, stronger crude oil prices boosted shares of several Australian oil companies, with Oil Search rising 1%, and Woodside Petroleum adding 0.4%. Those gains helped drive Australia's S&P/ASX 200 up 0.3%.

Brent, the international crude oil benchmark, gained 48 cents to $52.16 a barrel in Asian trade, buoyed by expectations that U.S. crude inventories fell by 3.8 million barrels in the week ended Oct. 14. Official data by the U.S. Energy Information Administration will be released later Wednesday.

Meanwhile, Japan's Nikkei Stock Average was up just 0.1%, as investors there waited for more corporate earnings to assess trends.

Among individual stocks, electronics maker Sharp gained 9.9% following a Nikkei report that the company expects to report its first group operating profit in three years, totaling around 40 billion yen ($385 million), for the fiscal year ending in March 2017.

Steel trader Hanwa gained 1.6% as investors bet that strong demand in China would support prices globally.

Pei Li, Jenny Hsu and Kosaku Narioka contributed to this article.

Write to Kenan Machado at kenan.machado@wsj.com

(END) Dow Jones Newswires

October 18, 2016 23:45 ET (03:45 GMT)

Oil Search (ASX:OSH)
Historical Stock Chart
From Mar 2024 to Apr 2024

Oil Search (ASX:OSH)
Historical Stock Chart
From Apr 2023 to Apr 2024