Risk appetite for cyclical assets in the Asian market primarily buoyed by upbeat data from China that indicated resilient growth in the world's second-largest economy and cementing optimism about the health of the global economy. China's industrial production in August rose 10.4% from a year earlier, outperforming expectations and accelerating from July's 9.7% advance. Meanwhile, retail sales gained 13.4%, also beating expectations. Urban fixed-asset investment excluding rural households in the first eight months of the year increased 20.3%, improving from a 20.1% rise in January-July.
The General Administration of Customs said in Beijing on Sunday that China's exports grew last month at the rate of 7.2% on a yearly basis. The figure was higher than July's 5.1% rise. China's imports rose a less-than-estimated 7% from a year earlier, leaving a trade surplus of more than US$28 billion, indicated that China is steadily recovering from the slump it was in earlier this year. National Bureau of Statistics released inflation data on Monday showing that China's consumer price index rose 2.6%, on a yearly basis, in August, in line with expectations and marginally lower than July's 2.7% rise.
Meanwhile buying momentum was also underpinned by calming uncertainty about the U.S. launch of military strike against Syria for the time being at least as President Barack Obama struggled to convince Congress of the need for a military strike on Syria and Russia urged Syria to give up its stockpile of chemical weapons.
Lawmakers in the US lined up against the US president Obama, reducing concern that the conflict may disrupt regional oil supply. Secretary of State John Kerry made comments that appeared to open the door to a diplomatic alternative in Syria instead of military strikes. U.S. Senate Democratic Leader Harry Reid set a test vote for later this week, but it was unclear whether the measure would attract enough backing to clear anticipated procedural roadblocks.
Russian Foreign Minister Sergey Lavrov promised Monday to push Russia's ally Syria to place its chemical weapons under international control and then dismantle them quickly to avert U.S. strikes. Syrian Foreign Minister Walid al-Moallem quickly embraced the proposal.
However, gains on the upside were limited as investors are also keeping an eye on U.S. Federal Reserve policy. Most market participants expect the central bank to announce next week it will start to pare back its accommodative monetary policies. The Federal Reserve has said any reduction in stimulus will be tied to a sustained recovery in U.S. employment. The Federal Open Market Committee holds a two-day meeting on Sept. 17-18.
Among Asian bourses, Japan market closed above one month high in the wake of enthusiasm about Tokyo's successful bid to host the 2020 Summer Olympics, yen depreciation against greenback, upbeat economic data from China and easing jitters over Syria military attack, with construction and export related blue chip shares led rally. The benchmark Nikkei 225 index closed 218.13 points higher at 14423.36, while the Topix index of all first-section shares rose 17.22 points to 1190.22.
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Construction related stocks advanced in Tokyo after Tokyo won the right to host the 2020 Olympics, with Kajima Corp up by 7.83%, Asahi Glass Co up 3.16% and Mitsubishi Estate Coup 1.95%.
Transport shares were strong spot on reports the government may add slots to accommodate Olympic traffic. Japan Airlines Co added 3.18% and All Nippon Airways Co rallied 3.77%
Japanese shipping companies advanced after the Baltic Dry Index (BDIY), which measures the cost of shipping commodities from copper to corn, climbed 9.3% in London yesterday, the most since June 2009. Shipper Mitsui O.S.K. Lines jumped 6.02% and Nippon Yusen K.K. rose 3.58%.
In Australia, Australian share market finished modestly higher, with financial, mining, retailer and tech heavyweights led rally. The benchmark S&P/ASX200 rose 19.70 points to 5201.20. The broader All Ordinaries added 19.50 points to 5198.90.
Shares of mining stocks climbed up in Sydney amid optimism economic growth in China, the world's biggest user of copper, is stabilizing, with BHP Billiton rising 0.8% to A$35.94 and Rio Tinto gaining 1.5% to A$62.88, while Fortescue Metals Group rose 1.1% to A$4.50.
In China, Chinese shares surged sharply today sending the benchmark Shanghai Composite index 25.47 points higher from prior day closure to 2237.98, the highest level since June 6, as investor spirits are lifted by positive Chinese data.
Shares of industrial companies surged sharply in Shanghai after better than estimated industrial production data for August. China Eastern, the nation's second-largest carrier, surged 9.9% to 3.34 yuan. Air China, the country's largest international carrier, advanced 4.5% to 4.39 yuan. Shanghai International Airport Co., operator of the second-busiest airfield, climbed 4.6% to 16.70 yuan.
Shares of shipping companies also advanced. China Shipping Container, the country's second-largest carrier of sea-cargo boxes, surged 9.9% to 3 yuan. Cosco Shipping Co, a unit of China's biggest shipping company, jumped 10% to 4.38 yuan.
In India, Indian benchmark indices galloped in late trade as the rupee hit two-week high against the dollar on receding geopolitical risks from Syria. Gains in global stocks also underpinned sentiment. The barometer index, BSE Sensex, over 6-1/2 week high above the psychological 20,000 mark in late trade. The CNX Nifty hit over 6-week high. The S&P BSE Sensex was provisionally up 709.74 points or 3.68%, up 535.14 points from the day's low and off 32.89 points from the day's high.
Indian index heavyweight and cigarette maker ITC surged. Reliance Industries also edged higher. Auto stocks led today's market rally. Tata Motors surged to record high after its UK-unit Jaguar Land Rover today, 10 September 2013 reported strong sales in August 2013. Capital goods gained on fresh buying.
Elsewhere, South Korea's Kospi index jumped 0.98% and Taiwan's Taiex gained 0.2%. Indonesia's JKSE Composite rose 3.98%, Hong Kong's Hang Seng rose 099% and New Zealand's NZX 50 Index jumped 0.3%. Singapore's Straits Times Index rose 1.16% and Malaysia's KLSE Composite added 1.03%.
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