Asia’s Stock Gains Driven by China’s Buyback Plans & GDP – Asia Market Wrap

Asian shares advanced as investors absorbed China’s better-than-expected growth data and stock purchase program details from the country’s central bank. Gold set a new record.

Shares in China and Hong Kong rose after the PBOC announced a lending mechanism with an initial limit of 300 billion Yuan ($42.1 billion) for bank loans used in share buybacks. Earlier, data showed that the nation’s latest GDP, industrial production, and retail sales results exceeded expectations.

An Asian stocks gauge was on track for its first daily advance since last week, partially fuelled by chipmakers’ gains following TSMC’s robust earnings. Shares of the Taiwanese chipmaker jumped as much as 6.3% in the opening trade. Equities in Japan erased earlier gains while those in Australia and South Korea fell.

US futures were steady after the S&P 500 fell from an intraday high Thursday to finish the session little altered. Treasuries held steady after significant selling on Thursday, when new signals of strength in the US economy led traders to lower expectations for rate reduction. Australian and New Zealand yields rose on Friday, mirroring the Thursday move in US government debt.

An measure of Dollar strength fell slightly, reversing a Thursday surge. The Yen was somewhat firmer versus the Dollar after falling below $150 in the previous session. Headline inflation in Japan increased by 2.5%, as expected, according to data released Friday.