Asian markets jumped Tuesday, with commodity-linked stocks particularly upbeat, after news that fourth-quarter economic growth in China had beaten forecasts eased fears of a sharper slowdown there. Mainland Chinese stocks, after dropping for the past four trading days, were the best performers, with the Shanghai Composite jumping 4.2 percent to 2298.38 and the Shenzhen Composite hopping 5.1 percent to 860.25. Their performance, following an advance Monday for European stocks after a successful French debt auction, also inspired gains in other markets in the region. Hong Kong's Hang Seng Index gained 3.2 percent to 19627.75, Japan's Nikkei Stock Average climbed 1.1 percent to 8466.40 and Australia's S&P/ASX 200 index added 1.7 percent to 4215.6. South Korea's Kospi rose 1.8 percent to 1892.74 and Taiwan's Taiex added 1.7 percent to 7221.08. “Given the euro-zone crisis has thus far been a slow-bleeding process—unlike the sudden collapse of the U.S. financial crisis—China's hard-landing risks are not imminent,” said Alistair Thornton at IHS Global Insight. Data out Tuesday showed the world's second largest economy grew at a faster pace than expected in the fourth quarter, with output up 8.9 percent from the year-earlier period. The growth was weaker than in the July-September quarter, but better than economists' expectations, and helped soothe fears that Europe's debt-related problems would slow the Chinese economy. Other key China data, including retail sales and industrial output, also beat estimates. The stronger-than-expected growth tempered expectations of an imminent reduction by Beijing in banks' reserve requirement ratios. “Markets are rebounding after overreacting to the [S&P] European credit downgrades on Monday,” said Linus Yip, strategist at First Shanghai Securities in Hong Kong. “People are still expecting more monetary easing, but we have to see the economy [slowing]. Right now, the better-than-expected GDP figure means the timing for the next easing measures may be a little delayed.” Commodity-linked stocks were notable gainers across Asia, with Aluminum Corp. of China and Jiangxi Copper jumping by the day's limit of about 10 percent in Shanghai. In Hong Kong, they rose 8.1 percent and 9.3 percent, respectively.
