People are reflected on an electric board as they watch financial markets indexes in Tokyo Tuesday, July 14, 2015. Asian markets mostly rose Wednesday, July 15, after data showed China’s economy grew more than expected in the second quarter, although Shanghai and Hong Kong sank on fears the news will likely put off any fresh growth-boosting measures. AP PHOTO/SHUJI KAJIY
HONG KONG–Asian markets mostly rose Wednesday after data showed China’s economy grew more than expected in the second quarter, although Shanghai and Hong Kong sank on fears the news will likely put off any fresh growth-boosting measures.
Investors were also awaiting testimony later in the day from US Federal Reserve chief Janet Yellen on the bank’s plans for hiking interest rates.
Tokyo stocks edged up 0.38 percent, or 78.00 points, to close at 20,463.33, while Sydney climbed 1.05 percent, or 58.8 points, to close at 5,636.2.
Seoul gained 0.66 percent, or 13.68 points, to end at 2,072.91.
But Shanghai sank 3.03 percent, or 118.78 points, to 3,805.70 and Hong Kong dropped 0.25 percent, or 65.15 points, to end at 25055.76.
China’s National Bureau of Statistics said the world’s No. 2 economy expanded 7 percent year on year in April-June, the same as the previous three months and better than the median forecast of 6.9 percent in an AFP survey of 14 economists.
The data follows a slew of disappointing results that have led to a series of measures–including four interest rate cuts since November–to shore up stumbling growth.
Bernard Aw, a Singapore-based strategist at IG Asia, told Bloomberg News: “The GDP numbers are really good. The better-than- expected GDP reading suggested that Beijing may take its foot off the pedal on more stimulus measures for the time being. This will affect sentiment in the stock market.”
Yellen at Congress
Despite the losses in Shanghai, confidence is slowly returning after the massive losses suffered since hitting a June 12 peak.
A painful stock sell-off that saw a more than 30 percent fall and spread to other markets was only halted Thursday after authorities unveiled a raft of strict measures to prevent a crash. The index climbed 13 percent from Thursday to Monday before retreating over the past two sessions.
Dealers will be closely following Yellen’s twice-yearly appearance at Congress to find more clues about monetary policy, with expectations for an interest rate hike by September.
The Fed boss has in the past said she sees rates normalizing by the end of the year, and the case for such a move increased Monday with Greece’s bailout reform deal that keeps it in the eurozone.
Fed policymakers have been concerned about announcing a hike while there was the possibility of a Greek euro exit, which would hit the global economy.
On Wall Street, the Dow climbed 0.42 percent, the S&P 500 advanced 0.45 percent and the Nasdaq jumped 0.66 percent.
With the likelihood of a rise growing the dollar climbed to 123.57 yen in Tokyo from 123.38 yen in New York.
The euro stood at $1.1022 compared with $1.1008 and 136.22 yen against 135.82 yen in US trade.
Japan’s currency edged lower after its central bank cut annual growth and inflation forecasts for the world’s third-largest economy, boosting the odds of more monetary easing measures this year.
Oil prices were mixed. Analysts said an agreement between the West and Iran on the country’s nuclear program–which will likely see a flood of crude on to global markets as sanctions are lifted–had largely been factored in by now.
US benchmark West Texas Intermediate for August delivery added 1 cent to $53.05 and Brent crude for August climbed 4 cents to $58.47.
Gold fetched $1,154.88 compared with $1,154.50 late Tuesday.
In other markets:
— Wellington rose 0.96 percent, or 55.08 points, to 5,805.96.
Fletcher Building was up 1.12 percent at NZ$8.12 and Spark lifted 0.88 percent to NZ$2.865.
— Taipei edged up 0.14 percent, or 12.44 points, to end at 9,054.20.
— Manila closed 0.27 percent, or 20.28 points, higher at 7,559.04.
BDO Unibank gained 0.95 percent to 105 pesos while Alliance Global Group added 0.67 percent to 22.45 pesos.
— Jakarta ended down 0.65 percent, or 31.96 points, at 4,869.85.
Real estate firm Bumi Serpong Damai gained 3.89 percent to 1,870 rupiah, while Bank BNI slipped 4.25 percent to 5.075 rupiah.
— Singapore rose 0.67 percent, or 22.36 points, to close at 3,338.86.
Banking giant DBS climbed 0.71 percent to Sg$21.20 and vehicle distributor Jardine Cycle and Carriage jumped 1.21 percent to Sg$31.90.
— Malaysia gained 0.36 percent, or 6.16 points, to 1,727.26.
Utility giant Tenaga rose 1.28 percent to 12.66 ringgit, Sime Darby added 0.58 percent to 8.60 while Telekom lost 0.15 percent to 6.69 ringgit.
— Bangkok slipped 0.11 percent, or 1.66 points, to 1,486.74.
Airports of Thailand fell 2.25 percent to 304 while coal mining company Banpu gained 0.98 percent to 25.75.
— Mumbai rose 0.95 percent, or 265.39 points, to end at 28,198.29 points.
Automobile maker Maruti gained 2.63 percent to 4,155.00 rupees, while Tata Steel fell 0.35 percent to 280.70 rupees.