Asian Equities Stretch Gains As China, US Economic Prospects Brighten

Stocks in the Asia-Pacific region extended their gain on Friday on China's fiscal spending ambitions and resilient US jobs data affirmed the Fed's soft landing target.

The Japanese Nikkei was up 0.91% at 39,161, while Australia's S&P ASX 200 was up 0.17% at 8,217 as of 6:11 a.m.

Propelled higher by new stimulus pledges by the Chinese government, the emerging-market stocks had their best day in nearly a year on Thursday, according to Bloomberg.

China’s benchmark CSI 300 Index is headed for its biggest weekly gain in almost a decade after it unveiled interest rate cuts, liquidity for banks and incentives for homebuyers.

Further, its Politburo vowed to complete the country’s annual economic goals. It called for the government to provide sufficient fiscal spending and forceful implementation of cuts to interest rates.

Meanwhile, Wall Street got a boost as the economy bounced back from the pandemic better than previously estimated. Economic growth last year was revised up to 2.9% from 2.5% while the first quarter GDP was revised to annual rate of 1.6% from 1.4%, signalling the country's soft landing from the Covid pandemic.

Separate data pointed that the economy's unemployment benefits fell to a four-month low. Initial claims decreased by 4,000 to 2.18 lakh in the week ended Sept. 21 versus the estimated 2.23 lakh applications.

Traders will eye China's industrial production numbers on Friday. Markets will also closely watch the US personal income and spending report during the session.

US stocks hit fresh records after data affirmed the health of the economy. S&P 500 index notched its 42nd closing record of this year. S&P 500 and Dow Jones Industrial Average climbed 0.40% and 0.62%, respectively. The Nasdaq Composite advanced by 0.60%.

Crude oil prices are on course for a substantial weekly decline on reports of more supply from the OPEC members. Brent crude was trading 0.61% lower at $71.16 a barrel as of 6:02 a.m. IST. West Texas Intermediate was down 0.65% at $67.23.

• US Dollar Index at 100.65

• US 10-year bond yield at 3.80%.

• Brent crude down 0.78% at $71.04 per barrel.

• Bitcoin was 0.72% up at $65,171.73

• Gold spot was down 0.09% at $2,669.97