Asian stock markets turn around

Like the Italians in yesterday's World Cup final, Asian stock markets today had to overcome an early deficit before coming out winners.


The economic data that came out of Asia today were generally positive.

In Japan, the Bank of Japan reported that bank lending rose 1.8 percent in June from the same month a year earlier, the biggest gain since March 1996, while the Cabinet Office reported that machinery orders fell 2.1 percent in May, less than expected and after climbing at their fastest pace in more than three years in April. Notwithstanding continued resistance in some quarters in the Japanese government, a hike in interest rates later this week by the BoJ is still widely expected.

Meanwhile, in China, the Ministry of Commerce reported that China's trade surplus widened to a record $14.5 billion in June from $13 billion in May as exports surged 23.3 percent from a year earlier while imports rose 18.9 percent. On the other hand, the China Securities Journal reported today that M2 expanded 18.4 percent in June, the slowest pace in six months.