Asian shares closed mostly higher Thursday, casting aside concerns over a partial shutdown of the U.S. government and instead focusing on an encouraging reading on non-manufacturing activity in China.
The Nikkei 225 index in Japan dipped 13.24 points, or 0.1%, to 14,157.25, as a selloff in shares of Fast Retailing, which carries the heaviest weighting on the index, offset a slightly firmer dollar. The stock closed Tokyo trade down 4.3% after a disappointing September sales report.
SoftBank Corp climbed 4% to a new 13-1/2 year high, overtaking Mitsubishi UFJ Financial Group Inc. to become the company with the second-largest market capitalization among the Nikkei components.
Hong Kong’s Hang Seng Index soared 229.92 points, or 1%, to 23,214.40
China’s official non-manufacturing Purchasing Managers’ Index rose to a six-month high of 55.4 in September from 53.9 in August, adding to a growing roster of evidence that China’s economy has turned a corner in recent months.
Stocks tied to domestic demand in China rallied in Taipei. Food maker Uni-President Enterprises jumped 5.1% and energy firm Formosa Petrochemical gained 2.5%.
Sands China and Galaxy Entertainment hit record highs after a strong start to the Oct. 1-7 National Day holiday and data showed Macau gambling revenue jumped 21.4% in September from a year earlier.
China Unicom surged 8.4% and China Telecom spiked 7.6%, with traders citing speculation that mainland authorities may reduce settlement fees for users at these two smaller telecom operators. This could ensure fairer competition between them and China Mobile whose shares slipped 0.7%.
Asian trade had started off on a cautious note as investors nervously eyed a protracted government shutdown in the U.S. Thousands of federal workers in the country remained on furlough for a second day Wednesday as lawmakers continued to clash over funding for the U.S. budget. The battle over spending is casting increasing doubt on the likelihood lawmakers will forge an agreement on raising the country’s debt limit this month.
In other markets;
Markets in Shanghai remained shuttered for holidays until next Tuesday.
Markets in Korea were also off for holiday
Taiwan’s Taiex index gained 142.50 points, or 1.7%, to 8,359.02
The Singapore Straits Times Index dropped 7.79 points, or 0.3%, to 3,144.79
In New Zealand, the Exchange 50 Gross Index gained 1.35 points to 4,770.22
In Australia, the S&P/ASX 200 moved higher 19.33 points, or 0.4%, to 5,234/89
