Asia stocks rise on solid US growth

Staff Writer
Columbus CEO

SEOUL, South Korea (AP) — Asian stocks rose Monday as a report that the U.S. economy expanded more than expected in the third quarter outweighed concerns about a credit crunch in China.

Hong Kong's Hang Seng was up 0.7 percent to 22,972.67 while China's Shanghai Composite added 0.4 percent to 2,092.99. South Korea's KOSPI rose 0.7 percent to 1,997.82.

Elsewhere, stocks in Taiwan, Singapore and New Zealand advanced. Tokyo stock markets were closed for a holiday.

Over the weekend, government figures showed that the U.S. economy grew 4.1 percent in the third quarter over a year earlier, compared with the previous estimate of 3.6 percent, strengthening the view that the world's largest economy will lead the developed market's growth next year, which many Asian exporters rely on for sales.

U.S. stocks rose after the report that the U.S. economy grew at the fastest clip since the late 2011 and much of the growth came from stronger consumer spending. On Friday, the Dow Jones Industrial average rose 0.3 percent while the Standard & Poor's 500 index gained 0.5 percent. The Nasdaq composite advanced 1.2 percent.

Investors will be looking at China after last week's report that the country injected $50 billion into the markets to ease a cash squeeze. Last Thursday, the People's Bank of China injected liquidity after the interbank market showed stress, but concerns over a repeat of the summer's credit crunch still weighed on some stock markets last week.

In energy markets, benchmark crude for January delivery was down 15 cents to $99.17 a barrel in electronic trading on the New York Mercantile Exchange. The contract added 55 cents to $99.32 on Friday.

In the currency markets, the euro was nearly unchanged at $1.3675. The dollar gained to 104.05 from 103.99 yen.