Asia report: Markets move higher as China manufacturing expands
By Josh White
Date: Monday 01 Jun 2020
(Sharecast News) - Markets in Asia finished higher on Monday, as investors digested fresh economic data out of China in a bid to gauge the state of the country's economy in the wake of its Covid-19 coronavirus lockdown.
In Japan, the Nikkei 225 was up 0.84% at 22,062.39, as the yen strengthened 0.21% against the dollar to last trade at JPY 107.6.
Automation specialist Fanuc slipped 0.03%, while among the benchmark's other major components, Uniqlo owner Fast Retailing was up 2.23% and technology giant SoftBank Group was 3.85% higher.
The broader Topix index was 0.32% firmer by the end of trading in Tokyo, closing at 1,568.75.
On the mainland, the Shanghai Composite added 2.21% to 2,915.43, and the smaller, technology-centric Shenzhen Composite surged 3.16% to 1,842.95.
In fresh data out of China on Monday, the official manufacturing purchasing managers' index (PMI) came in at 50.6 for May, falling from 50.8 in April and missing expectations for 51 according to a Reuters poll.
It was still above the 50-point level that separates expansion from contraction, however.
At the same time, the unofficial Caixin/Markit manufacturing PMI was 50.7 for May, beating Reuters-polled expectations for a reading of 49.6.
"Equity markets in Asia are firmly higher as well received economic reports from China combined with the fact that Mr Trump didn't kick off a trade fight with Beijing on Friday boosted sentiment," said CMC Markets analyst David Madden.
South Korea's Kospi was 1.75% firmer at 2,065.08, while the Hang Seng Index in Hong Kong leapt 3.36% to 23,732.52.
Life insurance giant AIA rocketed 5.17% by the end of trading in the special administrative region, as stocks there rebounded from last week, when Beijing's imposition of a national security bill on the city drew global condemnation.
Late on Friday, US president Donald Trump said he would move to cancel Hong Kong's special treatment in terms of trade with the United States, though he offered little detail.
Both of the blue-chip technology stocks were stronger in Seoul, with Samsung Electronics up 0.99% and chipmaker SK Hynix 2.58% higher.
Oil prices were lower at the end of the Asian day, with Brent crude last down 0.08% at $37.81 per barrel, and West Texas Intermediate falling 0.85% to $35.19.
In Australia, the S&P/ASX 200 managed gains of 1.1% to 5,819.20, with the country's major banks advancing once more.
Australia and New Zealand Banking Group was up 0.89%, Commonwealth Bank of Australia added 0.24%, National Australia Bank rose 0.79%, and Westpac Banking Corporation was 0.81% firmer.
Across the Tasman Sea, New Zealand's markets were closed for the Queen's Birthday public holiday.
Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.91% at AUD 1.4859, and the Kiwi advancing 0.4% to NZD 1.6049.
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