Asian Shares Gain as Fears over Military Attack on Syria Recede

Asian stocks rose ahead of key China industrial production and retail sales data, as fears over a US military attack on Syria recede.

The Japanese Nikkei is trading up 1.5% or 213.2 points at 14,418.86.

Australia's S&P/ASX is up 0.45% or 23.4 points at 5,204.9.

South Korea's Kospi is trading 0.03% higher or 0.50 points at 1,976.04.

India's BSE Sensex gained 2.13% or 411.35 points to 19,681.41.

Hong Kong's Hang Seng was trading 0.59% higher or 134.74 points to 22,885.39.

The Shanghai Composite was trading 0.23% higher or 5 points to 2,217.52.

Earlier, Wall Street closed higher after Syria welcomed Russia's proposal to put its chemical weapons under international control, abating fears of a US military intervention in the Middle East. However, the country did not say if it would comply with the proposal.

Oil prices, which shot up due to fears of a US attack on Syria, declined following the US pause, as the benchmark Brent crude fell 0.7% to $112.88 per barrel.

Most Asian economies rely on oil imports for their rising energy needs and a fall in oil prices is generally positive for Asian stocks.

China Economic Data

Chinese industrial production and retail sales data are expected to show that the world's second-largest economy is rebounding and is on path to attain the projected economic growth.

According to analysts, industrial production for August would grow by 9.9% year-on-year, the highest monthly growth this year. Meanwhile, August retail sales are expected to increase by 13.2% year-on-year, the same as last month.

Asian markets also benefited from expectations that the US Federal Reserve would not scale back its huge monetary stimulus significantly in the near term. US job data for the month of August has been disappointing and is not likely to allow the US central bank enough leeway to taper its bond buyback programme in a big way.

In Japan, policymakers announced that they expect the Shinzo Abe-led government would go ahead with measures aimed at boosting the economy. The Japanese yen is trading steady at 99.58 as at 6:18 GMT.

Major Movers

In Tokyo, construction firms Taisei and Kajima gained 12% and 8%, respectively. Hitachi Construction Machinery gained 7% and Taiheiyo Cement 6.9%.

Hong Kong-listed energy major China Coal Energy rose 5.5%, while computer-maker Lenovo gained 3.5% and casino operator Sands China 3%.

In China, industrial stocks gained the most. Taiyuan Heavy Industry was up 10.17%, Rizhao Port 10.11%, China Merchants Energy Shipping 10.11% and tech firm Shanghai Belling 10.08%.

Shipping companies led the increase in Korea. Hanjin Shipping was up 10.15%, Korea Pacific No 04 Ship 9.25% and NOROO Paint & Coatings 8.47%.

Australia's firmness was backed by mining and banking shares. BHP Billiton and Rio Tinto advanced 1% each and iron ore producer Fortescue Metals Group added 1.4%. Macquarie Group and Westpac Banking gained 1% and 0.5% respectively.