Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Business
Classified Sites

The Canadian Press - ONLINE EDITION

Asia stocks trace Wall Street gains on hopes of US bounce after poor 1Q GDP data

HONG KONG - Asian stocks rose Thursday, tracing gains on Wall Street, where shares shrugged off a poor quarterly economic report as a blip and instead factored in rebounding growth even as policymakers maintain ultralow interest rates.

Investors were unfazed by the U.S. government's report that the world's biggest economy shrank 2.9 per cent in the first quarter, the fastest rate since the global crisis five years ago.

But the downturn, due to a severe winter that closed factories, disrupted shipping and kept Americans away from malls, was seen as temporary, with growth rebounding sharply since spring. Investors may also be betting that it gives policymakers a reason not to raise rates.

"Weak U.S. data released overnight means the Fed will be in no hurry to tighten its policy stance," strategists at Credit Agricole CIB said in a report. "Firmer U.S. equities will provide a favourable backdrop for trading" in Asia.

Japan's Nikkei 225 edged up 0.1 per cent to 15,285.02 while South Korea's Kospi added 0.4 per cent to 1,990.31.

Hong Kong's Hang Seng jumped 0.9 per cent 23,083.41 while the Shanghai Composite Index in mainland China gained 0.5 per cent to 2,036.14. Australia's S&P/ASX 200 rose 0.7 per cent to 5,440.70.

On Wall Street, the Dow Jones industrial average rose 0.3 per cent to close at 16,867.51 and the Standard & Poor's 500 index rose 0.5 per cent to 1,959.53. The Nasdaq composite rose 0.7 per cent to 4,379.76.

In energy trading, the price of U.S. benchmark crude for August delivery rose 11 cents to $106.61 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 47 cents to settle at $106.50 on Wednesday.

In currencies, the dollar slipped to 101.74 Japanese yen from 101.81 in late trading Wednesday. The euro rose to $1.3635 from $1.3627.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
The First World War at 100
Why Not Minot?
Welcome to Winnipeg

Social Media

Canadian Mortgage Rates