Asian stocks started the week higher, approaching November's best gain on good news from the US economy and unexpected rate cuts in China.
In Sydney, BHP Billiton, the world's largest mining company, which gets 35% of its revenues from China, jumped 3,9%, while rival Fortescue Metals gained 8,9%, recovering after the losses of the last two weeks. China Vanke, the largest homebuilder in China, grew by 6,8% in Hong Kong. Finally, China Railway Construction climbed 1,7% after winning a $1,98 billion contract in Saudi Arabia.
The MSCI Asia Pacific excluding Japan Index rose 1,2% to 479.04 as of 9:48am in Hong Kong, nearing its biggest one-day gain since October 29. As it was said, the cut in Chinese rates, the first since July 2012, has generated optimism. Beijing has joined the European Central Bank and the Bank of Japan in providing new stimuli to the markets.
“The rally in Chinese stocks will continue,” said Nader Naeimi, head of dynamic asset allocation at AMP Capital Investors in Sydney. "Central banks can be aggressive on rates because inflation is not a problem."
Hong Kong's Hang Seng rose 1,9%, while the Hang Seng China Enterprises index of mainland Chinese stocks rose 2,6 percent. The Shanghai Composite rose 0,7 percent. Kospi (+0,7%), Australia's S&P/ASX 200 (+1.1%), Taiwan's Taiex (+0.4%) and Singapore's Straits Times (+0.3%) did well. The Japanese markets were closed for a holiday.
