Yahoo Finance ASX200 finishes ahead despite poor China GDP figures
The benchmark S&P/ASX200 (^AXJO) finished higher on Friday, despite bleak economic figures from China this afternoon.
It closed up 1.31 per cent at 5,487.50 points, while the broader All Ordinaries index (^AORD) also finished 1.41 per cent higher at 5,544.70 per cent.
China reported today that its first quarter GDP fell by 6.8 per cent compared to the same quarter in 2019. This is the first time China’s economy has declined since 1992.
Economists had tipped a contraction between 6.2 per cent and 6.5 per cent, with the larger contraction reflecting the sheer damage wrought by the respiratory illness.
What happened at midday?
The ASX200 pushed higher in midday trade, up 2.39 per cent at 12:07pm AEDT, ahead of China’s GDP data.
The All Ordinaries also gained 2.44 per cent, bringing it to 5,603.40 points.
What happened this morning?
The ASX200 lifted at the open following a strong night on Wall Street, buoyed by hopes of a virus treatment. It was up 1.60 per cent to 5,502.70 points at 10:25 am AEDT.
The All Ordinaries also rose 1.58 per cent to 5,553.90 points in early trade.
The ASX200 finished Thursday down 0.92 per cent.
What happened overnight?
This morning’s lift comes after Amazon and Netflix led US stocks higher, with both companies eking out record highs.
Amazon rose 4.4 per cent as shoppers turn online, while Netflix lifted 2.9 per cent as bored viewers remain indoors amid the severe outbreak in the US, where the shutdown in New York has been extended to mid-May.
Markets also lifted on hopes of a new coronavirus treatment. Drugmaker Gilead reported an antiviral treatment was marked as driving “rapid recoveries in fever and respiratory symptoms”, pushing Gilead stock 14 per cent higher.
First-quarter earnings kicked off this week, with US banks preparing for a wave of future loan defaults following a halt in business activity.
Analysts estimate earnings for S&P 500 companies slumped 12.8 per cent in the quarter, which would be the biggest year-over-year quarterly decline since the financial crisis.
Alan Lancz, president of Alan B Lancz & Associates in Ohio, said it was too early to say the market was recovering.
"We're not going to see a V-shaped recovery, and I think investors will eventually realise that, so it's premature to call a bottom in stocks at this stage," he said.
With AAP.
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