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Asian Stocks Up, Chinese Markets Re-Open to Better-Than-Expected Services Data By

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By Gina Lee – Asia Pacific stocks were mostly up on Friday morning, with China releasing better-than-expected economic data and concerns about the U.S. debt ceiling ease.

China’s was up 0.81% by 9:49 PM ET (1:49 AM GMT) while the Component was steady at 14,309.01. For September, the was 53.4.

Hong Kong’s inched up 0.07%.

Japan’s jumped 2.22%, with data showing that household spending contracted by a higher-than-expected 3% and 3.9% in August. JPY1.04 trillion was $9.33 billion, while JPY1.666 trillion was JPY1.666 trillion.

South Korea’s edged up 0.17% and in Australia, the rose 0.83%.

Investors kept an eye on Chinese markets, which re-opened after a holiday as the focus shifted back to the country’s embattled property sector. Yi Gang, Governor of People’s Bank of China said regulators would continue to crack down on monopolistic behaviour among online platforms and strengthen data protection for consumers.

On Thursday, the U.S. Senate voted temporarily to increase the debt limit. It helped boost sentiment after a lengthy stalemate. Later in the day, the U.S. Senate will release the latest job report including nonfarm payrolls. This could confirm expectations that the Federal Reserve may soon start asset tapering.

Global shares are set to wrap up the week with its best week since early September as the Senate’s decision averts an immediate U.S. default, but the debate about the debt ceiling is not over yet. Inflation, fueled by rising commodity prices, the Fed’s imminent asset tapering, and the Chinese property sector slowdown remain as risks for the economic recovery from COVID-19.

“As soon as you start thinking about asset tapering it’s really hard to not then think about what that means for the Fed funds rate and when that might start to increase,” Commonwealth Bank of Australia (OTC:) currency strategist and international economist Kim Mundy told Bloomberg.

“We do see scope that markets can start to price in a more aggressive Fed funds rate hike cycle.”

Other news from the central bank is that the decision to change the policy of the Bank will be made later today.

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.