Asian Stocks Rise On Robust US GDP Data

(RTTNews) - Asian stocks rose broadly on Wednesday after big revisions to U.S. third-quarter GDP growth powered U.S stocks to a record high overnight. A Commerce Department report showed that the U.S. economy grew at the fastest pace since 2003 last quarter, buoyed by stronger consumer and business spending. GDP grew an annual 5 percent during the summer months, a sharp revision from an earlier estimate of 3.9 percent.

Japanese shares extended gains for a fifth consecutive session as trading resumed after a public holiday on Tuesday. The benchmark Nikkei average climbed 1.24 percent to finish at 17,854.23, its highest level since Dec. 8, while the broader Topix index added 0.92 percent.

Among the prominent gainers, Mitsui Chemicals, Dentsu, Tokyo Electron and Sony Corp rose 3-4 percent. Exporter shares such as Canon, Panasonic, Toyota Motor and Honda Motor gained 1-2 percent on the back of weaker yen, which fell through the 120 mark against the dollar. Japan's Parliament today re-elected Shinzo Abe to serve another term as Prime Minister following his big victory in a Dec. 14 snap election that was billed as a referendum on his economic growth blitz.

Tokyo Dome Corp soared 8.7 percent following a rating upgrade by Mitsubishi UFJ Morgan Stanley Securities. Maruha Niciro Corp jumped 4.2 percent after raising its full-year net income forecast. Skymark Airlines rose 2.5 percent on bargain hunting after plunging more than 16 percent in the previous session.

Chinese shares tumbled for the second straight session, dragged down by financial stocks on concerns recent gains were overdone. The benchmark Shanghai Composite index fell 1.98 percent to finish at 2.972.53, extending Tuesday's 3 percent loss to post its biggest two-day loss since June 2013. Banks, brokerages and insurance companies paced the declines amid speculation the government would take steps to cool the stock market. Hong Kong's Hang Seng index, meanwhile, ended little changed with a positive bias.

Australian shares ended a quiet session slightly higher as investors largely refrained from making significant moves ahead of a long weekend. The benchmark S&P/ASX 200 swung between gains and losses before closing 0.25 percent higher at 5,394. Defensive stocks were in demand, with Wesfarmers rising 0.9 percent and Woolworths closing 0.3 percent higher at $30.50.

Banks recovered from early losses, with ANZ, Westpac and National Australia Bank rising between 0.4 percent and 1 percent, while Commonwealth edged down marginally. Oil and gas producer Woodside Petroleum rose half a percent and Oil Search gained 0.3 percent as crude prices rose to their highest level in more than a week yesterday.

Mining giant BHP Billiton rose 0.6 percent and Rio Tinto advanced 1.4 percent, but smaller rival Fortescue Metals Group declined 0.4 percent. In its latest December quarter update, the government slashed its price forecasts for iron ore in 2015 by a third to $63 a ton, citing an ongoing cyclical downturn in China's housing sector.

In economic releases, a leading index for the Australian economy dipped 0.2 percent in October, the Conference Board said - falling for the third straight month.

Seoul shares followed Wall Street higher as strong U.S. GDP data buoyed investors' risk appetite. The benchmark Kospi average rose 0.39 percent to 1,946.61 in holiday-thinned trade. Meanwhile, South Korea's consumer confidence weakened for the third straight month in December, a survey from the Bank of Korea showed. The consumer sentiment index dropped to 102.0 from 103.0 in the previous month.

New Zealand's benchmark index NZX-50 rose 0.1 percent in extremely light pre-Christmas, abbreviated trading as most institutional investors stayed away from the market. Pacific Edge rallied 3.7 percent, Kathmandu Holdings rose 1.9 percent to snap a three-day losing streak, Fletcher Building advanced 0.7 percent and the Port of Tauranga added half a percent to a record high, while Ebos Group fell 1.5 percent. Sky City Entertainment Group shed half a percent after announcing cost overruns in its Auckland convention centre.

Elsewhere, Malaysian shares were marginally higher, Indonesia's Jakarta Composite index was up half a percent, Singapore's Straits Times index was moving up 0.4 percent and the Taiwan Weighted average added a percent, while India's Sensex was down 0.3 percent. The Indian government today approved an executive order to implement coal and insurance reforms after a month-long parliament session that ended on Tuesday failed to vote on the crucial bills.

U.S. stocks turned in a mixed performance overnight following the release of a mixed batch of economic data. The Dow rose 0.4 percent to close above 18,000 for the first time and the S&P 500 edged up 0.2 percent to set a fresh record closing high, while the tech-heavy Nasdaq shed 0.3 percent.

In economic news, U.S. GDP grew at a robust 5.0 percent pace in the third quarter, the fastest in 11 years, and a measure of consumer sentiment increased in December to its highest level in nearly eight years, while durable goods orders and new home sales fell unexpectedly last month.