Asian Stocks Rise Following Chinese Economic Data

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 Asian stock markets showed an upward trend following better -than -expected Chinese economic data released during the Asian session.


China’s retail sales rose 4.9% year -on -year in October and exceeded expectations for a 3.5% increase.


This indicates consumption in China is increasing despite the Covid-19 embargo measures implemented and global supply chain disruptions threatening the country’s economic recovery.


In addition, manufacturing industry data also exceeded expectations with an increase of 3.5% while fixed asset investment increased 6.1% from last year.



Meanwhile, according to CBA economists, there is a possibility that the People's Bank of China will reduce its bank reserve requirement (RRR) this week by 50 basis points to support their economic activities.


The MSCI Asia-Pacific index outside Japan rose 0.1% and Japan’s Nikkei gained 0.7% in the third quarter after being strengthened by strong fiscal stimulus.


The Wall Street market closed weaker last week while S&P 500 futures strengthened 0.2% and was followed by Nasdaq Composite futures which rose 0.3% during early Monday morning trading session.


This week's focus is on US retail sales on Tuesday which will have a big impact as a result of the fall in consumer sentiment as reported in November regarding the sharp rise in prices especially petrol prices.


The dollar continued to strengthen at 95.120 higher against most other major currencies. Against the Yen, the USD was at 113.99, not far from the highest level recorded in October at 114.69.

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