Markets shrug off EFSF downgrade as China hopes boost Asia

Stocks in Asia rallied overnight as reports of slowing Chinese growth increased speculation the government would act to ease lending curbs and avoid a hard landing.

The regional benchmark index headed for a six-week high as the MSCI Asia Pacific index gained 1.7% to reach 117.58 on close. Chinese data showed growth of the world's second largest economy slowed slightly in the fourth quarter to 8.9%, but surpassed market expectations of 8.6%. Japan's Nikkei gained 1.05% to 8,466, Hong Kong's Hang Seng rose 2.53% to 19,493.20 while the S&P/ASX 200 Index jumped 1.65% to reach 4,215.6. Blue-chip heavyweights led the rally in the Hong Kong market following the upbeat Chinese growth data. Cnooc, China Resources Land, ICBC, Ping An and Chalco were all...