Asia report: Markets higher as China manufacturing data impresses
Markets in Asia finished higher on Tuesday, with investors digesting strong manufacturing data out of China, as the ongoing political instability in the US appeared to become more pronounced overnight.
Japan’s Nikkei 225 was ahead 0.3% at 19,985.79, as the yen weakened against the dollar, last losing 0.12% to JPY 110.39.
On the corporate front in Tokyo, Japan Airlines was up 2.77% after it lifted its earnings forecast on Monday, and Panasonic was down 2.2% after reporting a 16.9% improvement in first quarter operating profits.
Mizuho Financial Group said its net profits were off 11%, leading to a 0.56% decline in its stock.
On the mainland, the Shanghai Composite was up 0.59% at 3,292.28, and the smaller, technology-centric Shenzhen Composite was ahead 0.18% at 1,882.47.
The unofficial Caixin manufacturing PMI was released on Tuesday, which showed the Chinese manufacturing sector grew in July.
It came in at 51.1 for the month, ahead of the 50.4 forecast in a Reuter-polled estimate, and also above June’s 50.4 reading.
The data was in contrast to the official PMI on Monday, which came in at 51.4, below the expected 51.6.
South Korea’s Kospi was up 0.84% at 2,422.96, while the Hang Seng Index in Hong Kong strengthened 0.79% to 27,540.23.
Manufacturing plays led the gains in Seoul, with Lotte Chemical up 3.12% and Samsung Heavy adding 4.02%.
Political instability was the theme of the day overnight in the US, with White House communications director Anthony Scaramucci fired by President Donald Trump 10 days after he was hired to the role.
The sacking was reportedly to give chief of staff John Kelly a fresh slate to work with.
Oil prices were higher during Asian trading, but lost out in early European hours, with Brent crude last down 0.52% at $52.45 per barrel and West Texas Intermediate off 0.32% at $50.01.
In Australia, the S&P/ASX 200 was 0.91% firmer at 5,772.37, with the energy and utilities subindexes underpinning the gains, rising 2.03% and 2.27% respectively.
The Reserve Bank of Australia stood pat on interest rates, leaving the country’s official cash rate at 1.5%, as markets expected.
In its statement, the central bank said the currently strong Aussie dollar could “contribute to subdued price pressures in the economy”.
New Zealand’s S&P/NZX 50 was 0.5% higher at 7,729.44, led higher by former state telco monopoly Spark, which was ahead 2.9%.
Both of the down under dollars were weaker against the greenback, with the Aussie last down 0.24% at AUD 1.2524 and the Kiwi losing 0.56% to NZD 1.3380.