Asia Jumps Again on Positive China News

Stocks in Asia Pacific rose on Tuesday as China’s official manufacturing Purchasing Manager’s Index for June came in above expectations.

In Japan, the Nikkei 225 index recovered 293.1 points, or 1.3%, to 22,288.14.

Meanwhile, Japan’s industrial production in May dropped 8.4% month-on-month, according to data released Tuesday in a preliminary report by the country’s Ministry of Economy, Trade and Industry. That was a larger decline than a median market forecast of a 5.6% fall by economists

The Japanese yen traded at 107.65 per U.S. dollar after weakening sharply from levels below 107.5 yesterday.

In Hong Kong, the Hang Seng index regrouped 125.91 points, or 0.5%, to 24,427.19, as of its final hour of trading, with shares of life insurer AIA falling 1.2%.

The Australian dollar changed hands at $0.6852 after touching an earlier high of $0.6885.


In Shanghai, the CSI 300 regained 54.24 points, or 1.3%, to 4,163.96.

The moves came after China passed a controversial national security law for the city. Chinese officials are set to hold a media briefing regarding the security law on Wednesday morning local time.

China’s official manufacturing Purchasing Managers Index for June came in at 50.9, according to data released by the country’s National Bureau of Statistics (NBS). Economists had a median forecast of 50.4 for the data print. PMI readings above 50 signify expansion, while those below that indicate contraction.

In May, the official manufacturing PMI was at 50.6, according to the NBS.

In other markets

In Shanghai, the CSI 300 regained 54.24 points, or 1.3%, to 4,163.96.

In Korea, the Kospi climbed 14.85 points, or 0.7%, to 2,108.33

In Singapore, the Straits Times Index re-asserted itself 15.81 points, or 0.6%, to 2,589.91

In Taiwan, the Taiex index moved positively 78.62 points, or 0.7%, to 11,621.24.

In New Zealand, the NZX 50 gained 198.52 points, or 1.8%, to 11,451.05.

In Australia, the ASX 200 moved back up again 82.85 points, or 1.4%, to 5,897.88.