29 Jul 2015

China stocks recover in early trade

2:19 pm on 29 July 2015

Asian stocks were higher today on a strong Wall Street lead and hopes that Chinese markets will settle after days of volatility.

Investors look at screens showing stock market movements at a securities company in Beijing.

Photo: AFP

Overnight, the Dow Jones finished up higher, breaking a five-session trend.

After record losses earlier in the week, China said it would stabilise stocks and hinted at further easing, sending a cue to Wednesday's trade across the region.

Japan's Nikkei 225 traded 0.3 percent up at 20,397.33 points.

Traders in the country took some positive leads from retail sales in the country, which were 0.9 percent up in June compared to the previous year, beating forecasts of 0.5 percent.

Japan also will see earnings out later in the day for gaming company Nintendo, electronics giant Panasonic and automaker Nissan.

Australia led the region's gains, with the ASX/200 up by 0.7% to 5,625.80 points.

Mining giants BHP Billiton and Rio Tinto were among the market movers pulling the index higher.

In South Korea, the benchmark Kospi index traded 0.5 percent up at 2,050.22.

Investors across the region were also looking ahead at the US Federal Reserve wrapping up a two day meeting later on Wednesday.

Hopes are that there might be signals on the timing of an interest rate raise later in the year.

Elsewhere in Asia, stocks traded mixed, managing to withstand the downward pull from China.

Shares in camera maker Canon rose 0.5 percent. The increase came as a surprise after the firm cut its earnings outlook and reported a 16 percent fall in quarterly profit on Monday.

Sales have been hit by consumers increasingly using their smartphones rather than compact cameras.

In South Korea, the benchmark Kospi also ended flat at 2,039.08.

Relief for stocks came from Prime Minister Hwang Kyo-Ahn declaring the end of the deadly outbreak of Middle East Respiratory Syndrome (Mers).

Thirty six people died out of the 186 infected by the virus, following the first diagnosis on 20 May.

The outbreak had been a major strain on the country's economy, affecting domestic consumption and tourism. The quarantine of the last suspected patient was lifted on Monday.

-BBC

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