SEOUL: Asian stocks bounced higher Thursday after weak data from major economies boosted hopes for stimulus and a slow pace for U.S. interest rate hikes.
Japan’s Nikkei 225 rose 1.6 per cent to 19,339.70 and South Korea’s Kospi added 0.1 per cent to 2,030.06. Hong Kong’s Hang Seng advanced 0.4 per cent to 25,187.71 while Australia’s S&P/ASX 200 gained 0.6 per cent to 5,897.10. Stocks in mainland China and Southeast Asia were also higher.
Sluggish data from the U.S. showed the world’s largest economy may have slowed in the first quarter. Payroll processor ADP said U.S. companies added fewer jobs last month than economists had expected, while an index of manufacturing activity declined for the fifth month in a row. In addition, the government said U.S. construction spending fell in February. After weak data from ADP, analysts said the government’s March payroll employment data scheduled to be released on Friday may hit a softer note.
“The policy implication is that the Fed is still leaning toward a rate hike this year,” Mizuho Bank Ltd. said in a commentary. “The nuance though is that the pace of tightening will be more gradual and may be pushed back slightly depending on data.”
