Asian stocks rise as re-open of U.S economy offsets China GDP slump

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Asian stocks rise as re-open of U.S economy offsets China GDP slump
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Asian stocks look set to bounce on Friday to recover towards a one-month high as investors, following Wall Street's lead overnight, sought silver ...

TOKYO: Asian stocks gained on Friday as President Donald Trump's plans to gradually re-open the U.S. economy outweighed concerns over data that showed China suffered its worst economic contraction on record due to the coronavirus outbreak.

Data from China showed the world's second-largest economy shrank for the first time since at least 1992 because of the coronavirus outbreak and tough containment measures. Gross domestic product contracted 6.8per cent in the quarter year-on-year, slightly more than expected, and 9.8per cent from the previous quarter.

Shares in Asia tracked gains on Wall Street, as hopes that the United States will roll back restrictions on businesses boosted risk appetite. Reports based on partial data that showed severe COVID-19 patients responded positively to a drug made by Gilead Sciences Inc also lent support. Equity markets also took the China data in stride partly because it has contained the virus and managed to get large parts of its economy back up and running from a standstill in February.

Japan's Nikkei stock index rose 3.15per cent on Friday, while shares in South Korea gained 3.25per cent.

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