Asian Shares Trade Higher After Wall Street Rise and Japan GDP Data Show Growth

Wall Street Rallies as Japan GDP Reports Growth

After reports of a positive outlook for the US economy, Asian shares are trading largely upward Thursday, December 8, 2023. The S&P 500 on Wall Street rose 0.4%, continuing its recent surge after one of its best days of the year.

Japan also released data, showing the country's gross domestic product (GDP) grew at an annualized rate of 1.3% in the July-September quarter. Exports and government spending powered this economic growth, signaling a strengthening Japanese economy.

Positive Sentiment in Asia

Asian markets have responded positively to these developments. Japan's Nikkei 225 led the gains, rising 1.3% to a two-month high. The broader Topix index climbed 1.1%.

China's CSI 300 rose 0.4%, and Hong Kong's Hang Seng Index gained 0.5%. South Korea's KOSPI advanced 0.3%, and Australia's S&P/ASX 200 inched up 0.1%.

Positive Outlook for the US Economy

The positive sentiment in Asia follows a strong performance on Wall Street Wednesday. The S&P 500 gained 1.4%, its best day since early November, and is now within 1% of its all-time high.

Strong hiring data for November, which showed an increase in payrolls and a drop in the unemployment rate, boosted market optimism. Investors are also encouraged by signals from the Federal Reserve that it may slow the pace of interest rate hikes to combat inflation.