Asian shares rise after strong U.S. earnings boost markets
- Shares in Asia rose following a positive performance in U.S. markets, driven by strong earnings from major companies.
- China is anticipated to report economic growth data, with forecasts indicating a growth rate below the government's target.
- Despite some declines in specific markets, the overall trend reflects cautious optimism among investors amid ongoing economic challenges.
On October 17, 2024, shares in Asia experienced a mostly positive trend following a rise in U.S. stocks, which were buoyed by better-than-expected earnings reports from major companies like Morgan Stanley and United Airlines. In Hong Kong, the Hang Seng index rose by 0.9%, while the Shanghai Composite index saw a modest increase of 0.1%. China is set to release its economic growth data for the April-September quarter, with forecasts suggesting an annual growth rate of approximately 4.5%, falling short of the government's target of around 5%. Economists have characterized the current measures as a 'bailout' aimed at fostering a gradual recovery rather than a quick rebound. They noted that without significant changes in housing policy, the measures may not stimulate substantial investment in real estate. However, the credit injection package is seen as a necessary step to mitigate financial risks and liquidity issues faced by developers, potentially averting a subprime crisis in China. In Japan, the Nikkei 225 index fell by 0.6% due to a reported 1.7% decline in exports from the previous year, which has widened the trade deficit. Meanwhile, South Korea's Kospi dipped by 0.2%, while Australia's S&P/ASX 200 gained 0.6%. Thailand's SET index increased by 0.7% following a recent interest rate cut by the central bank. Overall, the positive earnings reports from U.S. companies have had a ripple effect on Asian markets, indicating a cautious optimism among investors despite ongoing economic challenges in the region.