Asia report: Markets move higher amid China PMI surprise

In Japan, the Nikkei 225 was up 1.43% at 21,509.03, as the yen weakened 0.14% against the dollar to last trade at JPY 111.01.

Of the big blue-chip stocks on the benchmark index, automation specialist Fanuc added 2.41%, fast fashion giant Fast Retailing rose 0.88%, and technology conglomerate SoftBank Group was 1.44% firmer.

Apple supplier Japan Display rocketed 10.14%, after the company confirmed it was working towards a financing deal this week, which would involve a stock and bond issue of between JPY 60bn and JPY 80bn.

Japan Display has been under the cosh as a result of poor sales of Apple’s new iPhone range, with reports earlier in the year suggesting the firm was in talks with Chinese investment groups about a financial lifeline.

The broader Topix index was 1.52% higher by end-of-play in Tokyo, closing the day at 1,615.81.

In economic news from Japan, the Bank of Japan’s tankan survey was released during the day, which showed a fall in business confidence among large manufacturers in the first quarter of the year.

On the mainland, the Shanghai Composite surged 2.58% to 3,170.36, and the smaller, technology-heavy Shenzhen Composite wash ahead 3.57% at 1,755.67.

The rises in China came after both Beijing’s official purchasing managers’ index and the unofficial Caixin/Markit manufacturing PMI rose in March, contrary to expectations and to the surprise of most market watchers.

Beijing’s official reading came in at 50.5 for March, up from a three-year low of 49.2 in February, while the Caixin measure was 50.8 for the third month of the year.

“This is the first month in four that Chinese manufacturing activity has returned to growth and suggests a read through of Chinese macro policy growth support beginning to flow through into the economy,” noted National Australia Bank senior economist David de Garis.

The data came ahead of a resumption of trade talks between the US and China in Beijing later in the week, as the two economic superpowers work to resolve their ongoing trade war.

South Korea’s Kospi was 1.29% firmer at 2,168.28, while the Hang Seng Index in Hong Kong added 1.76% to 29,562.02.

Of the blue-chip technology stocks in Seoul, Samsung Electronics rose 0.9% and SK Hynix was ahead 3.23%.

Oil prices were higher as the region went to bed, with Brent crude last up 1.17% at $68.38, and West Texas Intermediate rising 0.69% to $60.56 per barrel.

In Australia, the S&P/ASX 200 was ahead 0.59% at 6,217.00, with gains coming from almost all subindices.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 continued its record-breaking run, rising 0.1% to close at a new all-time high of 9,853.91.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.28% at AUD 1.4051, and the Kiwi advancing 0.3% to NZD 1.4649.