Further signs of improvements in global manufacturing pushed Asian stocks higher on Tuesday, with Japan leading the gains as the yen weakened towards to the ¥100-to-the-dollar mark.
Japan’s Nikkei 225 ballooned 405.52 points, or 3%, to 13,978.44
Hong Kong’s Hang Seng Index leaped 219.24 points, or 1%, to 22,394.58
Positive manufacturing data from Europe on Monday supported regional sentiment, after Markit’s euro-zone purchasing managers index rose to 51.4 in August from 50.3 in July - with a score above 50 indicating an increase in factory activity. In terms of individual countries, the readings from both Germany and Italy were particularly strong.
The yen was weaker against the U.S. dollar as investors unwound their safe-haven positions amid signs of improvement in global manufacturing. The dollar was at ¥99.52 in early Asian trade Tuesday, compared with ¥99.33 late Monday in New York, and adding to a 1.2% gain in the previous session.
The yen’s weakness towards the much-watched ¥100-to-the-dollar mark, a level that has not been breached since July, gave Japanese stocks a boost on Tuesday.
Auto makers benefited from the weaker yen in Tokyo, with Toyota Motor Corp. up 2.8% and Honda Motor Co. rising 2%.
Australia’s S&P ASX 200 was up ahead of the Reserve Bank of Australia’s policy announcement later in the session. Although there are little expectations of a change in monetary policy, a surprise could impact both local stocks and the currency.
Miners in Sydney made strong gains as the price of iron ore rose over night: Rio Tinto rose 2.7% and Fortescue Metals Group was 4.5% higher.
CHINA
The factory figures from Europe added to an upbeat picture from China, where on Sunday the country’s official PMI hit a 16-month high. This added to a picture of stability in Asia’s largest economy and resulted in strong gains for the region’s markets.
The Shanghai Shenzhen CSI 300 took on 34.16 points, or 1.5%, to 2,354.50
In other markets;
The Taiex Index in Taiwan gained 49.51 points, or 0.6%, to 8,088.37
Korea’s Kospi Index added 8.93 points, or 0.5%, to 1,933.74
The Singapore Straits Times Index fell 0.94 points to 3,054.78
In New Zealand, the Exchange 50 Gross Index jumped 10.35 points, or 0.2%, to 4,606.71
In Australia, the S&P/ASX 200 added 8.29 points, or 0.2%, to 5,196.57
