2014.10.3103:03:09UTC+00Asian stocks rallied on stronger US growth, BOJ, GPIF

Asian stocks rallied after the US economy beat estimates on its GDP while Japan is bolstered by BOJ policy decision and GPIF fund hike.

The MSCI Asia Pacific Index added 0.4% to 140.82, Tokyo time. For the week, the gauge was able to garner a total of 2.4%.

The Bank of Japan announced today that voters voted 5-4 to increase monetary target expansion to 80 trillion yen or $726 billion. Earlier, stocks has already bolstered due to the $1.2 trillion pension fund increase to bolster shares following the stronger-than-expected US economic growth. The region bolstered after the Fed announcement to its monthly bond-buying program while keeping interest rates low for “considerable amount of time”

The Topix Index added 4.4% set for a 7.5% close for the week. Meanwhile, the Nikkei 225 stock Average surged by 4.9% to 16,427.06, 2:11 pm Tokyo time. The Topix Index was able to erase the year’s loss while the Nikkei 225 Stock Average reached its highest level since 2007.  Hong Kong’s Hang Seng China Enterprises Index or the H-share added 0.7% to 10,703.71, 10:41 am, Hong Kong time. The index extended gains for a total of 3.8%. Meanwhile, the Hang Seng Index increased 0.8% while the CSI 300 Index was steady with financial rallies offset by technology shares. China’s Shanghai Composite Index inched down 0.1% to 2,389.11.  Australia’s S&P/ASX 200 and South Korea’s KOSPI Index increased by 0.92% or 50.40 points to 5,526.60 and 0.28% or 5.50 points to 1,964.43 respectively.

 Chief equity strategist at Nuveen Asset Management, Bob Doll, commented to Bloomberg that the concern of investors now is on the economy and corporate earnings and it appears that market participants have overanalyzed the Fed. Doll adds that job growth has increased as the GDP report turned out to be stronger than had been estimated and that bolsters the belief of a stronger US economy and thus stocks will continue its journey higher.

Head of investment strategy at AMP Capital Investors Ltd. , Shane Oliver, commented to Bloomberg that today’s trading means a double boost for the Japanese market with the GPIF shares allocation increase and the BOJ’s faster cash pump rate. Oliver adds that it had been increasingly obvious that the BOJ was not doing enough that’s why they needed to act more and that it has always been a query of when they would add action. Oliver says that it is an “excellent outcome.”

US stocks advanced following the release of GDP report that showed that the data was better-than-expected. This signifies that the US economy is ready for higher interest rates