Asia: Shanghai rises on economic stimulus expectations

The majority of Asian indices were higher on Thursday following expectations of more stimulus from the Chinese government.

Shanghai rose 2.15% after a publication by the People's Bank of China said the nation needs more monetary easing.

Standard & Poor lifted its rating on China on Thursday from 'AA-' to 'A-1+" as the agency believes the government policies will make the country's economy more resilient.

The agency said the reforms implemented towards a more market-driven economy could help China sustain robust GDP growth while curbing credit growth over the next two to three years.

However, it warned that it may lower the rating if "material contingent fiscal risks crystalise, perhaps due to a hard landing of the economy".

Deutsche Bank analysts believe that the government is likely to cut the growth rate to around 7% from 7.5%. They also predict an increase in the fiscal budget target and a cut in the M2 growth target.

Japane's Nikkei 225 was up 1.08% after Bank of Japan chief Haruhiko Kuroda said the country's economic growth was fragile but on track.

The Federation of National Public Service Personnel Mutual Aid Associations said on Wednesday it will buy more stocks, increasing its exposure to 25% from 8%.

Australia’s ASX was down 0.61% following worse-than-expected private capital expenditure, which was down 2.2% during the last quarter of the year against forecasts of -1.9% and a 0.6% growth in the third quarter.

Atlas Iron, the Australian mining company, fell 5% after posting a net loss of $1.09bn.

In Japan, Inpex Corp gained 3.29% thanks to a reboun in crude futures.

China Electric Power Construction Corp rose 9.94% and China Railway Construction gained 7.56%.