Asia report: Markets mixed as China manufacturing data impresses

Markets in Asia finished in a mixed state on Tuesday, with equities in China in the green as fresh data suggested the country’s manufacturing sector was getting back to work in March.

In Japan, the Nikkei 225 was down 0.88% at 18,917.01, as the yen weakened 0.73% against the dollar to last trade at JPY 108.55.

Of the major components on the benchmark index, automation specialist Fanuc was down 2.01%, while Uniqlo owner Fast Retailing rose 1.96% and technology giant SoftBank Group rose 2.57%.

The broader Topix index was also weaker by the end of trading in Tokyo, closing down 2.26% at 1,403.04.

On the mainland, the Shanghai Composite gave up some earlier gains but still finished 0.11% firmer at 2,750.30, and the smaller, technology-heavy Shenzhen Composite was up 0.51% at 1,665.93.

Official data out of China on Tuesday showed an expansion of the country’s manufacturing sector in March, with the manufacturing purchasing managers’ index coming in a 52 for the month.

A Reuters poll of analysts had expected a reading of 45, with the 50 point mark separating expansion from contraction.

The data suggested a sector bounceback from a record low PMI of 35.7 in February, when much of the country was under an authoritarian lockdown in a bid to get a lid on the spread of the Covid-19 coronavirus, which originated in the country’s Hubei province.

Market watchers were still holding their breath, however, for the unofficial Caixin/Markit PMI reading, which was due on Wednesday.

“China provided Western investors with a light at the end of the tunnel on Tuesday, showing it is possible to return to growth after the worst - hopefully - of the coronavirus crisis,” said Spreadex analyst Connor Campbell.

South Korea’s Kospi was ahead 2.19% at 1,754.64, while the Hang Seng Index in Hong Kong was up 1.85% at 23,603.48.

Both of the blue-chip technology stocks were weaker in Seoul, with Samsung Electronics down 0.21% and chipmaker SK Hynix 0.48% lower.

Oil prices rebounded during the Asian session, with Brent crude last up 2.15% at $23.26 per barrel, and West Texas Intermediate rising 5.86% to $21.34.

Prices for the thick black stuff had plunged to 18-year lows on Monday.

In Australia, the S&P/ASX 200 lost 2.02% by end-of-play, closing at 5,076.80, giving up some of the gains it made in a stellar session on Monday.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 rose 1.4% to 9,796.75, led higher by utility software company Gentrack, which rocketed 40% higher after reiterating its earnings guidance.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 1.05% at AUD 1.6376, and the Kiwi retreating 1.06% to NZD 1.6799.