YEREVAN, April 25. /ARKA/. Asian stocks rose Thursday as mixed U.S. corporate earnings and a slump in orders for U.S. durable goods convinced investors that central banks would continue efforts to help the global economic recovery.
The U.S. government reported Wednesday that orders for long-lasting factory goods fell more than economists expected. That added to concerns that global growth is slowing. Orders for durable goods declined 5.7 percent in March following a 4.3 percent gain the previous month. The March figure was the biggest dip in seven months.
Mitul Kotecha at Credit Agricole CIB said that data reinforced concerns of an economic slowdown. However, he said that markets were thrust higher by hopes that the U.S. Federal Reserve and other central banks would continue to pursue policies to encourage growth.
“There has been a run of weaker U.S. data and that effectively dampens expectations that the Fed may pare back its asset purchases prematurely or early, and I think that is supportive of equity markets,” Kotecha said.
He also noted that core capital goods, which strip out defense and aircraft orders, were “quite healthy,” edging up 0.2 percent. Economists pay close attention to these orders because they are a good measure of companies’ investment plans.
Japan’s Nikkei 225 rose 0.5 percent to 13,909.40. Hong Kong’s Hang Seng advanced 1.1 percent to 22,421.93. South Korea’s Kospi added 0.2 percent to 1,939.98. Benchmark indexes in mainland China, Singapore, and Thailand also rose. Indonesia and Taiwan fell. Markets in Australia and New Zealand were closed for public holidays.
Rising metals prices helped stocks such as Hong Kong-listed Zijin Mining Group, China’s largest gold miner, which rose 5.3 percent. Jiangxi Copper Co. rose 4.4 percent. –0–
