Asian shares higher despite lower IMF growth forecast

TOKYO — Asian stock markets rose yesterday as a pickup in oil prices boosted resource shares and emerging economy currencies, taking in their stride the IMF’s lower global growth forecast and Japan’s central bank leaving monetary policy unchanged.

After a dismal summer, which saw the worst quarter for global equities since 2011, traders say fund managers are ready to pile back in.

Japan’s Nikkei 225 and South Korea’s Kospi both rose 0.8 per cent, while Hong Kong’s Hang Seng climbed 3.1 per cent and Singapore’s Straits Times Index gained 2.2 per cent.

The International Monetary Fund on Tuesday lowered its world economy forecasts to 3.1 per cent this year, down from July’s 3.3 per cent forecast and from 3.4 per cent growth last year, citing weak commodity prices and a slowdown in China.

The Bank of Japan (BOJ) yesterday ended a policy board meeting with no change to its already lavish policy of monetary stimulus. There was market speculation the BOJ would announce new stimulus measures, but many economists did not expect a move at yesterday’s meeting.

A jump in oil prices helped offset some concerns that China’s slowdown could lead to overcapacity in many industries, especially the resource sector. Brent rose 90 cents a barrel at US$52.82 (S$74.51), having jumped as much as US$3 on Tuesday to close above US$50 for the first time in a month. US light crude rose US$1.18 a barrel to a high of US$49.71 before easing back to trade about US$49.60.

The Indonesian and Malaysian currencies, the worst performers among emerging Asian currencies this year, both reacted positively. The rupiah strengthened 2.7 per cent, the biggest jump in two years. Malaysia’s ringgit climbed 2.8 per cent, the biggest jump since 1998. Agencies