Asia cheers upbeat Chinese data, China stocks flip to gains

A persistent risk-on sentiment got a further boost from better-than expected China data across the board, which eased market fears over dwindling Chinese economic recovery and boosted the demand for risk assets across the financial markets.

Hence, the stocks on the Asian bourses benefited from the renewed risk-on wave and extended further north, while the Chinese equities erased losses and turned into the positive territory. The sentiment around the Asian indices also remains lifted, in response to the extended rally on the Wall Street, with the local stock markets trading at all-time highs.

With the dust settling over the BOE aftermath, markets now look forward to a fresh batch of US economic releases, including the CPI, retail sales and consumer sentiment figures, due later in the session ahead. While BOE Governor Carney’s speech will also remain in the spotlight.

China stocks buck the trend

The Japanese benchmark index, the Nikkei 225 jumps +1.03% to 16,555, supported by a strong rebound in USD/JPY, up +0.72% on the day. The Australian markets also followed suit, with the S&P/ASX 200 now gaining +0.62% around 5,445 points, as markets cheer the China data dump.

The Chinese equities also extend the recovery mode, with the benchmark Shanghai Composite index up +0.18%; the CSI300 index rises +0.10%. While Hong Kong markets trade +0.45% higher around 21,660 levels.