• Home
• /
• Markets

Asian stock markets rise on stimulus hopes

Asian stocks rose Tuesday as optimism China might take new steps to stimulate its slowing economy offset weak US data and the IMF’s gloomier outlook for world growth.

Japan’s Nikkei 225 rose 0.8 percent to 8,793.63 and China’s Shanghai Composite Index gained 0.6 percent to 2,162.01. South Korea’s Kospi added 0.9 percent to 1,833.92.

Expectations of possible Chinese stimulus measures rose after Premier Wen Jiabao’s weekend promise of tax breaks and other aid to struggling small businesses. China’s second-quarter growth fell to a three-year low of 7.6 percent but analysts said a rebound might be in sight.

“There is strong evidence suggesting that growth remains solid and its momentum is rebounding. Beijing is bound to do more to ensure that this continues,” said Credit Agricole CIB economist Dariusz Kowalczyk in a report.

There are also hopes US Federal Reserve chief Ben Bernanke will hint at the possibility of additional stimulus for the American economy when he addresses Congress on Tuesday and Wednesday.