Korean shares hit near four-year high on growth data

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South Korean shares hit a near four-year high after the country reported better-than-expected growth in the first quarter.

The Kospi index closed up 1.4% at 2,173.41 after rising to 2,174.72 - its highest intraday level since July 2011.

Data showed the economy expanded by 0.8% from January to March against forecasts of 0.7% growth.

Asia's fourth-largest economy received a boost from increased construction and consumer spending.

Moves by the government to ease housing loan restrictions also helped the economy.

However, growth is expected to weaken again in the second quarter.

"The small rebound in first quarter gross domestic product may be temporary," said Young Sun Kwon, an economist at Nomura.

"We expect exports to weaken further in the second quarter on weaker global demand and a strengthening of Korean Won relative to its trading partners.

"Given the still-large levels of economic slack in manufacturing and labour markets, we expect the Bank of Korea to cut the policy rate by 25 basis points to 1.50% in May to limit downside risks to the economy."

Rest of Asia

Shares across the rest of Asia were mostly higher, even though a closely-watched private manufacturing survey reflected more weakness in China's economy.

The flash HSBC China purchasing managers' index (PMI) for the manufacturing sector fell to 49.2 in April. A figure below 50 indicates contraction.

The Shanghai Composite hit a fresh seven-year high on expectations for more government stimulus. It closed up 0.4% at 4,414.51 while Hong Kong's Hang Seng index ended down 0.4% at 27,827.7.

Taiwan's stock exchange rose 1.9% to 9,797.49, its highest level since October 2007.

In Japan, the benchmark Nikkei 225 ended 0.3% higher at 20,187.65, after closing above the 20,000-point mark for the first time in 15 years on Wednesday.

In Australia, the benchmark S&P/ASX 200 closed up slightly at 5,844.77.