According to a report from the Wall Street Journal,Asian stocks jumped higher on Monday after strong economic data from the world's two largest economies helped sentiment, while a profit warning from QBE Insurance Group in Sydney weighed on Australian stocks.
The main data point in Asia came from China over the weekend, as the country posted its largest trade surplus in nearly five years. Exports rose by a hefty 12.7% from a year earlier, while imports rose 5.3%.
The main data point in Asia came from China over the weekend, as the country posted its largest trade surplus in nearly five years. Exports rose by a hefty 12.7% from a year earlier, while imports rose 5.3%.
The trade data was a positive sign for both China and the global economy, and it was followed early Monday by inflation data.The country's CPI rose by 3% Y/Y in November,in line with expectations for a 3.1% increase.
The pieces of data helped market sentiment, which could be seen in a weaker yen. The dollar pushed 0.5% higher to ¥102.89 against its Japanese counterpart on Friday and rose slightly on Monday—it was last at ¥103.13.
The dollar trading above the ¥103 mark gave a boost to Japanese stocks, as the Nikkei jumped 2.3% to 15650.21. The weaker currency helped exporters, as Toyota Motor Corp. rose 1.3% and Kyocera Corp added 2.5%. Industrial robotic firm Fanuc Corp. added 2.5% after Credit Suisse raised the firm's target price.
Indian stocks hit an all-time high on Monday. The Sensex was up 1.6% late in Asia, after results from the country's recent state elections showed that the opposition Bharatiya Janata Party had claimed four critical victories. The results were a positive for the business-friendly party's chances in the May 2014 elections, which helped the Indian rupee hit a four-month high against the dollar. The dollar was last trading at 61.07 rupees.
In China, Hong Kong's Hang Seng Index rose 0.3% to 23811.17 and the Shanghai Composite rose less than 0.1% to 2238.20.
Elsewhere in the region, South Korea's Kospi gained 1% to 2000.38, Taiwan's Taiex rose 0.9% to 8444.62 and Indonesia's JSX was up 0.9%.
Australia failed to take part in the regional rally, as the S&P ASX 200 turned a modest early gain into a loss after the local mood was hurt by a profit warning from QBE Insurance Group. The index fell 0.8% to 5144.40.
