A strong performance from the commodities sector helped China’s Shanghai Composite index rise for the third consecutive session. Mainland China’s benchmark index climbed 2.7 per cent to 2,285.74, helping to push the FTSE Asia Pacific index 1.3 per cent higher to 224.46.
The Shanghai Composite has climbed 6.4 per cent to a one-month high since Thursday’s close, its best three-day performance in a year. During 2011, the Shanghai Composite fell by nearly 23 per cent.
Investors appeared unperturbed by data showing weaker than expected import growth and instead focused on speculation that authorities will soon act to ease monetary policy.
“China’s equities have done particularly well, as slower import growth leads some to think the authorities will likely ease policy in the next month or so, and this will, in turn, boost markets,” said Adrian Foster at Rabobank. “I think the authorities will ease via cuts to the required reserve ratio.”
Results from US aluminium producer Alcoa that met with forecasts provided impetus for Chinese commodity issues.
Aluminum Corp of China , or Chinalco, gained 5.3 per cent to Rmb6.81 in Shanghai and was up 2.9 per cent to HK$3.53 in Hong Kong.
Esprit Holdings , the Europe-focused fashion group, climbed 4.4 per cent to HK$10.88 after naming a former executive of German sportswear group Puma to run its product development and design operations.
China Telecom , a wireless carrier, rose 1.7 per cent to HK$4.28 after Apple moved closer to offering the iPhone to China Telecom customers.
Hong Kong’s Hang Seng index climbed 0.7 per cent to 19,004.28.
Seoul broke a three-day losing streak as the Kospi Composite climbed 1.5 per cent to 1,853.22.
LG Display , the flat screen maker, climbed 3.8 per cent to Won26,100 after playing down speculation that it would launch a rights issue.
India’s biggest winners were resource stocks following Alcoa’s results. Hindalco , the aluminium smelter, climbed 4.3 per cent to Rs123 while Jindal Steel added 4.1 per cent to Rs499.20. The BSE Sensex rose 2.2 per cent to 16,165.09 while the Nikkei 225 Average gained 0.3 per cent gain to 8,422.26 as Japanese traders returned after Monday’s holiday.