Asian stocks rise after economic optimism in US
Asian stock markets rose today after an unexpectedly strong US housing report renewed confidence in the world's biggest economy and enabled investors to overlook slower growth in China.
The US Commerce Department said builders started construction on new single-family houses and apartments at the fastest pace in more than four years.
Housing starts surged to an annual rate of 872,000 in September, far above estimates. The figures offset the gloom from some mediocre earnings reports.
Analysts at DBS Bank Ltd in Singapore said it remains to be seen whether the housing data represents the start of a real recovery.
"One thing's for sure: nowhere else do you see this sort of growth in the economy. If for that reason alone, it's worth watching," DBS said in a market commentary.
Housing is crucial to any economic recovery in the US and the good numbers enabled investors in Asia to overlook a further slowdown in China's economic growth.
The world's number two economy grew 7.4% in the third quarter, down from 7.6% in the previous three months and the lowest since the first quarter of 2009.
Japan's Nikkei 225 index rose 1.7% to 8,952.68. Hong Kong's Hang Seng index added 0.5% to 21,523.50 and South Korea's Kospi gained 0.1% at 1,957.41. Australia's S&P/ASX 200 advanced 1.1% to 4,579.60.
Hopes that Spain's debt calamity might ease grew ahead of a meeting of European Union leaders in Brussels later today.
Markets are hoping that Spain will seek help to keep its borrowing costs down.
The government in Madrid has been reluctant to do so because such aid could damage the country's image and also compel it to comply with onerous conditions.
