China stocks rally on stimulus hopes, Aussie dollar hit by weak GDP data

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Asian stocks held their ground on Wednesday as Chinese equities soared on stimul...

TOKYO - Asian stocks held their ground on Wednesday as Chinese equities soared on stimulus hopes, although a resurgence in regional tensions capped broader gains with North Korea opting to restore part of a missile test site it had began dismantling earlier.

Hong Kong’s Hang Seng added 0.2 percent and Australian stocks advanced 0.7 percent as mining stocks climbed on the prospect of increased Chinese stimulus.South Korea’s KOSPI was down 0.3 percent following news that North Korea had restored part of a missile test site, with U.S. President Donald Trump’s national security advisor John Bolton warning that new sanctions could be introduced if Pyongyang did not scrap its nuclear weapons program.

The Australian economy expanded just 0.2 percent in the fourth quarter, slower than the 0.3 percent increase economists had forecast in a Reuters poll. The Aussie was down 0.66 percent at $0.7036 following a slip to a two-month trough of $0.7029. A report from the Institute for Supply Management showed U.S. non-manufacturing sector companies in February placing the most new orders since August 2005, an indicator of robust health.

Beijing revealed at the annual meeting of its parliament on Tuesday that it is targeting economic growth of 6.0 to 6.5 percent in 2019, less than the 6.6 percent gross domestic product growth reported last year.

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