Asian stocks rose after a report that showed China’s economy is slowing boosted speculation the government may take extra measures to spur growth amid concerns about Europe’s debt crisis.
Country Garden Holdings Co. (2007), a real estate developer, rose 4.5 percent in Hong Kong after China’s economy grew a faster- than-estimated 8.9 percent in the fourth quarter from a year earlier. Canon Inc. (7751), a Japanese camera maker that depends on Europe for about a third of its sales, rose 0.6 percent after France sold debt at a lower cost even after its credit rating was cut. Sumitomo Mitsui Financial Group Inc. (8316), Japan’s No. 2 publicly traded bank, rose 1.2 percent after it won a bid to buy Royal Bank of Scotland Group Plc’s aircraft-leasing unit.
The MSCI Asia Pacific Index gained 1 percent to 116.75 as of 11:16 a.m. in Tokyo, rebounding from a 1.1 percent decline yesterday, the biggest since Dec. 19. About five stocks rose for each that fell on the gauge. European Central Bank President Mario Draghi yesterday said loans offered last month to the region’s banks helped avoid “a major credit crunch.”
“It does seem like markets are taking a glass-half-full view of Europe and they seemed to be very impressed by the liquidity that’s coming out of” the ECB, said Andrew Pease, Sydney-based chief investment strategist for the Asia-Pacific region at Russell Investment Group, which manages $150 billion. “Anecdotally, we are hearing China’s senior leadership is very, very concerned about the outlook in Europe, which tells you the bias is to ease policy more than they have already.”
To contact the reporter on this story: Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net.
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