Le Asian stock markets continued their run, with the regional index approaching monthly highs. The optimism was fueled by positive data in the American real estate sector and the statements of Chinese premier Wen Jiabao who reassured the good health of Beijing's economy before the release of new data on gross domestic product.
The Japanese machinery manufacturer, Hitachi Construction Machinery, which makes 17% of sales in China, rose 2,3% in Tokyo. James Hardie Industries, a supplier of building materials that gets 67% of its turnover from the US, jumped 4% in Sydney. Woodside Petroleum, Australia's second-largest oil producer, also advanced 3,9% in Sydney after it raised its production forecast. The MSCI Asia Pacific index gained 0,5% to 123.51 as of 10:04 in Tokyo, posting growth for the third day in a row, before the opening of markets in China and Hong Kong. Japan's Nikkei 225 Stock Average was up 1,1%, as was Australia's S&P/ASX 200, while New Zealand's NZX 50 was up 0,7 percent. South Korean Kospi, on the other hand, grew by 0,2 percent.
“There are no downside risks for the equity sector given that the situation in the US is not deteriorating – explains Masahiko Ejiri, senior fund manager for Mizuho Asset Management -. The market consensus is that China's GDP will continue to be weak, but that the government will implement new growth measures once the political transition is over." The Communist Party of China will name new leaders for the next decade at the congress to be held on Nov. 8.
