Asian markets rallied on news that the US economy is growing more than expected. Also thrilling the markets is the announcement that the Japanese Government Pension Fund will increase its exposure to equities. The MSCI Asia Pacific index rose 0,4% to hit 140.82 at 9:01am in Tokyo before the opening of the Chinese and Hong Kong markets. The index advanced 2,4% this week, making it the first week of continuous gains since last August.
The news that the US economy is growing at an annualized rate of 3,5% in the last quarter has generated optimism in the markets, completing the best half-year performance of the last ten years. The data shows that the lowest number of Americans in the last 14 years are filing for unemployment benefits.
"Better-than-expected US GDP growth was enough to be a reminder that the early stages of the rate-hiking cycle are a good time to buy stocks," said Ric Spooner, chief market analyst at CMC Markets from Sydney. "The announcement ensures a solid ending to this trading week."
Japan's Topix gained 1,1 percent. Japan's national pension fund, the largest in the world, will increase its exposure to local and foreign equities to 25% today, according to the Nikkei. Australia's S&P/ASX 200 index rose 0,5%, South Korea's Kospi index 0,2% and New Zealand's NZX 50 index 0,5%.
