Asian markets jump on US GDP revision

Asian shares opened higher on 28 August as a surprisingly strong upward revision of US economic growth eased concerns over China. The US Commerce Department said gross domestic product expanded 3.7% year-on-year in the April to June period, considerably higher than the 2.3% growth reported earlier.

Mainland China's Shanghai Composite climbed 1% to 3,115.48 in early trade after closing 5% higher on 27 August. The benchmark index had retreated more than 16% earlier in the week as concerns over China's slowing economy sent global markets reeling.

"Concerns about a possible softening in China's economic growth have been offset by news of a sharp upward adjustment in US second quarter GDP," Reuters quoted CMC Markets analyst Ric Spooner as saying. "From a growth point of view, the US [Federal Reserve] looks well placed to begin increasing interest rates in December."

Shares elsewhere in Asia also extended gains, with the Hang Seng rising 1.2% to 22,098.10 while the region's biggest stock market, the Nikkei, was up by 2.5% at 19,030.60 points. Overnight, shares in Wall Street were buoyed by the stronger-than-expected GDP data, with the Dow Jones, S&P 500 and the Nasdaq indices all closing over 2% higher.

Meanwhile, official figures from Japan showed its consumer price index rose 0.2% from a year earlier in July, well short of the central bank's 2% target. Core consumer prices, which strip out the volatile costs of fresh food, was flat.

The economy ministry also said retail sales were up 1.6% year-on-year in July following a 1% gain in June, but analysts downplayed the significance of the spike in growth. "The retail sales number is good but it may also be driven partly because of a weaker yen and tourism, and not really due to domestic factors," Alvin Liew, senior economist at UOB, told CNBC.

South Korean shares were up, with the Kospi index rising 1.5% to 1,936.50. In Australia, the S&P/ASX 200 benchmark advanced 0.6% to 5,266 points.