Asian stock markets rose on Monday after encouraging economic data from China showed that the domestic economy might begin to stabilize, backed by Chinese authorities'stimulus measures, giving investors a little breather.
China's second-quarter gross domestic product (GDP) grew by 6.2% compared with the same period last year, the slowest growth rate in at least 27 years, but other data show that industrial added value and total retail sales of consumer goods above June are easily higher than expected.
The good monthly economic activity data show that China has adopted a series of stimulus measures to boost the domestic economy and offset some of the effects of the protracted Sino-US trade war.
Stock market shocks followed the release of China's data, as some expect the Chinese government to ease further stimulus measures.
The MSCI Mingsheng Asia-Pacific (excluding Japan) index rose 0.2% to 526.72. The index fell more than 1% last week, ending its five-week run-up. Transactions will be listed as Japan is closed on public holidays.
Australian shares fell 0.4%, while the Korean Composite Stock Index. KS11 was basically flat. China's stock market recovered from its early decline, with the Shanghai-Shenzhen 300 index. CSI300 up 0.4%. The Hang Seng Index. HSI rose 0.3%.
"Influenced by today's data, investors may be easing expectations because fiscal measures seem to be working," said Frances Cheung, an analyst at Western Pacific Bank.
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