The Asian markets that have suffered in the recent past are now enjoying some gains. The stocks of Asia soared high following the gain in the US. Japanese yen weakened further, helping the exporters’ stocks of Japan.
The Nikkei stock index increased by 0.7% and Australian index gained more than 0.9%. However, Australia experienced a negative economic growth for this quarter since 2011. This is the result despite the increase in Asian market stocks. The Korean index stayed flat while the Hong Kong Hang Send Index increased by 0.4%. The Nasdaq composite also increased by 0.2%.
On Wednesday, the Japanese yen weakened further against the US dollar. It lost 0.3%, but the weakening of yen is good for the Japanese exporters. The weaker yen has helped Toyota Motor stocks to increase by 1.6% and Panasonic stocks by 2.1%. The Asian markets are also supported by the positive data that came in from the US in the previous night.
The GDP of Australia was down 0.5% in the third quarter compared to what it was in the second quarter. This will directly affect the economy, shrinking it by 0.1%. Investors are hesitant to bring capital into Australia. This has resulted in the weakening of Australian dollar, even though the stocks recovered quickly as a result of gains by the banks.
It is expected that the Italian government will take 2 billion euro stake in Banca Monte Dei Paschi di Siena, which is one of the most troubled banks. This has also helped the bank stocks of Asia to strengthen.