Asian equities rose as investors digested China’s better-than-expected economic data and stock buyback program details from the country’s central bank.
Gold hit a new record. Shares in China and Hong Kong extended gains after the People’s Bank of China said it set up a relending mechanism with an initial 300-billion-yuan ($42.1 billion) quota for bank loans used in share buybacks.
Earlier, data also showed that the nation’s latest gross domestic product, industrial production and retail sales figures beat estimates. An Asian stocks gauge was on track for its first daily advance since last week, partially fueled by chipmakers’ gains following Taiwan Semiconductor Manufacturing Co.’s robust earnings.
Shares of the Taiwanese chipmaker jumped as much as 6.3% in opening trade. Equities in Japan erased earlier gains while those in Australia and South Korea fell.
The PBOC is focusing on “cutting the cost of financing for the real economy so that it can help corporates and households to start leveraging again” and to deliver more liquidity support, Peiqian Liu, Asia economist at Fidelity International, told Bloomberg TV.
