Asian markets rose Monday on the Chinese Premier Wen Jiabao's announcement of the government's intentions of increasing stimulus measures to regain the economic growth momentum.
Hong Kong's Hang Seng rose 0.19 percent or 35.80 points to 19128.43. Major gainers were PetroChina Co Ltd (1.51 percent) and Sands China Ltd (1.10 percent). The Chinese Shanghai Composite fell 1.04 percent or 22.71 points to 2163.18.
Japan's Nikkei Stock Average marginally rose 0.05 percent or 4.11 points to 8724.12. Among major gainers were Chiyoda Corp (2.75 percent), IHI Corp (2.47 percent) and COMSYS Holdings Corp (2.20 percent).
South Korea’s KOSPI Composite Index rose marginally at 0.03 percent or 0.48 points to 1813.37. Shares of Samsung Electronics Co Ltd climbed 0.53 percent and shares of Hyundai Motor Co advanced 1.55 percent.
India's BSE Sensex rose 0.25 percent or 42.51 points to 17256.21. Major gainers were Tata Steel (0.98 percent), Suzlon Energy Ltd (0.78 percent) and ICICI Bank (0.58 percent). Market players are waiting for India’s June inflation data that will be announced Monday.
In a report by the official Xinhua news agency, Jiabao said Sunday that measures will be implemented to ensure that the economy is rejuvenated and growth is supported. He warned that recovery will take some time and difficulties may prevail in the meanwhile. However, he added that policies will be fine-tuned and measures put into place in the second half of this year to ensure a smooth economic upturn. Data released last week by the National Bureau of Statistics shows that China’s gross domestic product grew at 7.6 percent in the second quarter of 2012, compared to the same period in the earlier year, the slowest in three years. Market participants feel a pressing need for stimulus measures to boost the sluggish economy.
Market players are seriously taking note that the growth in the world’s second-largest economy, which slowed down for six continuous quarters, has been seriously affected by the deepening debt burden faced in the euro zone and the faltering U.S. economic condition.
“The long-term stabilization of the Chinese economy is left to the invisible hand of the market. That in turn depends on whether the government can conduct reforms to unleash mighty market forces which will boost demand and productivity,” said Jim Dorsey of IHS Global.