The release of first-quarter gross domestic data of Japan gained investor reaction due to which the Asia-Pacific stocks surged in the Tuesday morning trade. The Taiwan stocks gained in the major markets.
The surge in Taiex in Taiwan was 3.28% in the morning trade, on Monday there was a slight drop of 3% that occurred amidst the virus threat.
As the Topix index advanced 1.49%, the Nikkei 225 in Japan also soared with gains of 2.12%.
As per the data shown by the government, Japan’s economy dipped at an annualized rate of 5.1% from January to March. The gross domestic product declined 1.3% quarter-on-quarter in the same period, which was lower than estimated for a 1.2% decline by Reuters poll. It occurred due to the resurgence of virus infections which spoiled the growth of two consecutive months of the country.
The Hang Seng index rose 1.3% in Hong Kong, the Chinese stocks grew higher with the Shanghai composite rising 0.21%, South Korea’s Kospi edged 1.1% higher and the Shenzhen component gained 0.28%.
The S&P/ASX 200 in Australia rose 0.73%. As per the minutes from the Reserve Bank of Australia’s May monetary policy meeting released on Tuesday, the central bank’s board observed the rate rise can’t occur “until 2024 at the earliest.”
MSCI’s broadest index of Asia-Pacific shares outside Japan traded around 1% higher.
On Monday the World Health Organization warned concerning the coronavirus that the global pandemic is not yet over although there is a high rate of vaccination in a few of the countries. To curb the virus spread in some places like Taiwan and Singapore that witnessed the recurrence of the infections which prompted the authorities to intensify the restrictions.
Currencies and oil
The U.S. dollar index was at 90.135 — lower than 90.8 seen recently.
Spiraling from levels around 109.5 against the greenback yesterday The Japanese yen traded at 109.16 per dollar. The Australian dollar drifted to $0.779, stronger than levels below $0.774 seen last week.
, with international standard Brent crude futures up 0.32% to $69.68 per barrel the oil prices were higher in the morning of Asia trading hours. U.S. crude futures also gained 0.3% to $66.47 per barrel.
