Most Asian markets rose Thursday after a survey showed China manufacturing activity expanded for the first time in more than a year, reaffirming an improvement in the Chinese economy, though Shanghai stocks fell after a strong rebound the previous day.
“The growth trend started in August and has continued to move in the right direction, which looks to justify the governments policies on targeted stimulus, whilst keeping the property sector on a tight rein,” said Andrew Sullivan, a principal sales trader at Piper Jaffray, referring to the China manufacturing data released by HSBC.
Preliminary data released by HSBC Thursday showed China’s manufacturing Purchasing Manager’s Index climbed to 50.4 in November — the first reading above the 50-point level, which indicates an expansion, in 13 months, amd rising from a final reading of 49.5 in October.
Japan’s Nikkei Stock Average climbed 1.1% as further weakness in the yen spurred the nation’s exporters, while Australia’s S&P/ASX 200 jumped 1.3% to lead gains for the region’s top indexes.
South Korea’s Kospi added 0.7%, Taiwan’s Taiex advanced 0.4%, and Hong Kong’s Hang Seng Index climbed 0.3% after briefly dipping into the red ahead of the Chinese manufacturing data.
The Shanghai Composite Index , however, dropped 0.5% after witnessing a sharp afternoon rebound Wednesday.
The overall strong performance came in the wake of a higher finish on Wall Street Thursday, ahead of the Thanksgiving holiday in the U.S., and on improved sentiment over the Chinese economy.
HSBC’s chief economist for China Hongbin Qu said that Thursday’s manufacturing index “confirms that the economic recovery continues to gain momentum towards the year end. However, it is still the early stage of recovery, and global economic growth remains fragile.”
The HSBC data, one of the earliest indicators on the health of the factories that drive a large part of the Chinese economy, added to gains for Hong Kong and South Korean shares in particular. It also boosted some other risk assets, including oil prices.
Stock movers
In Hong Kong, China Resources Land Ltd. climbed 3.2% and consumer-product maker Hengan International Group Ltd. rose 1.7%, while in Seoul, Hyundai Engineering & Construction Co. gained 2.4%, and Kia Motors Corp. advanced 1.3%.
In Shanghai, several construction and automobile stocks were higher, but resource and financial stocks broadly declined, weighing the overall market.
SAIC Motor Corp. rose 0.2%, and Poly Real Estate Group Co. gained 0.9% in the downbeat market, while Jiangxi Copper Co. fell 1%, China Construction Bank Corp. lost 0.7%, and Ping An Insurance Group Co. shed 0.8%.
Meanwhile, Japanese exporters rallied in what has become a familiar story of late, as the yen fell to its lowest point against the dollar since the spring.
With the U.S. dollar trading around the ¥82.5 level and the euro near ¥106, blue-chip tech names saw outsized gains in the last trading day ahead of a three-day weekend.
Sharp Corp. rose 3.7% Advantest Corp. climbed 2.8% and Honda Motor Co. gained 2.4%.
Steel mills saw strength in Japanese and Australian markets. JFE Holdings Inc. added 3.2% in Tokyo, while BlueScope Steel Ltd. surged 10% in Sydney after a approving research note from Deutsche Bank, which retained its buy rating on the shares.
Miners were also enjoyed gains in Australian trade, with Alumina Ltd. climbing 3.8%, uranium extractor Paladin Energy Ltd. improving by 2.3%, and BHP Billiton Ltd. adding 1.4%.
Shares of surfwear maker Billabong International Ltd. leapt 4.8% after the Australian Financial Review reported it may list its e-commerce businesses as a spin-off.
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