Asian markets cheer over China’s stronger-than-expected GDP data; STI up 0.4%
SINGAPORE shares ended higher on Friday (Oct 18), tracking gains on regional bourses after China’s third-quarter economic growth exceeded market expectations.
The benchmark Straits Times Index (STI) was up 0.4 per cent or 14.94 points at 3,640.19. Across the broader market, gainers outnumbered losers 360 to 194, after 1.1 billion securities worth S$1.1 billion changed hands.
Most key indices in the region finished the week higher. The Nikkei 225 climbed 0.2 per cent, the Hang Seng Index rose 3.6 per cent, and the FTSE Bursa Malaysia KLCI was up 0.3 per cent.
Following the news on gross domestic product growth, China’s central bank spelt out the operational details of two funding schemes that will initially pump as much as 800 billion yuan (S$147.6 billion) into the country’s capital markets. The benchmark CSI 300 ended Friday 3.6 per cent higher.
Vasu Menon, managing director of investment strategy at OCBC, highlighted that the Q3 GDP growth data, despite beating street estimates, is still lower than Q2’s 4.7 per cent rise and the slowest pace in six quarters.
“Property continued to be a drag, but September’s retail sales, which (are) a gauge of consumer spending, provided a small ray of light,” he said, referring to the 3.2 per cent retail sales growth last month.
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“Overall, however, China’s economy is not out of the woods and continues to struggle. But Q4 data could show some improvement and possibly allow China to achieve its 5 per cent target for this year, after the slew of stimulus measures announced recently.”
On the STI, the biggest decliner was Wilmar International, which dropped 0.9 per cent or S$0.03 to S$3.28.
ST Engineering was the top gainer, ending up 2.1 per cent or S$0.10 at S$4.81.
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