Asian stocks ended Monday’s session broadly higher, with Japan regaining momentum after a record Wall Street close on Friday and upbeat Chinese manufacturing data over the weekend. Meanwhile, Chinese markets were closed for a holiday.
Japan’s Nikkei 225 index vaulted 303.54 points, or 2.1%, to end the day at 14,935.92. The index has increased in seven of the past eight sessions, with Friday providing a small setback with a 0.3% loss.
Markets in New Zealand and Taiwan were also shuttered for a holiday
In Japan, the dollar strengthened against the yen on improved investors’ risk appetite, buying ¥102.041 from ¥101.800 on Friday’s close.
Tech exporters were aided by the weaker yen, as Hitachi Ltd. jumped 3.5%, Olympus Corp. climbed 2.8%, and both Panasonic Corp. and Renesas Electronics Corp. gained 2.7%.
However, Dai-Ichi Life Insurance, one of Japan’s largest life insurers, tumbled 5%, after news reports said the company is in talks for an acquisition of U.S. peer Protective Life for $4.9 billion U.S.
In Australia, the Aussie dollar dropped to 92.54 U.S. cents from 93.09 U.S. cents in the prior session.
Financial stocks were stronger, as National Australia Bank Ltd. advanced 1.2%, Commonwealth Bank of Australia rose 0.8%, and Australia and New Zealand Banking Group Ltd. added 0.7%. Miners were mixed, with Alumina Ltd. gaining 2.5%, while BHP Billiton Ltd. lost 1.1%.
CHINA
Chinese markets, both on the mainland and in Hong Kong, were closed for the Dragon Boat Festival, but investors will have plenty to chew over when trading reopens after some strong manufacturing data and plans to ease the reserve requirements for some banks.
First a bit more analysis on the data: The government version of China’s manufacturing Purchasing Managers’ Index, showed stronger-than-expected growth in activity.
On Sunday, data from China’s National Bureau of Statistics showed that Chinese factory activity expanded faster than expected in May, rising to 50.8 from 50.4 in April.
Bank of America-Merrill Lynch took a similar view that the numbers were modestly positive, although they cited a pre-data consensus of 50.7, making the result slightly less of a surprise.
When the markets reopen on Tuesday, we will also get a look at the final reading for HSBC’s version of the China manufacturing PMI, with a previously released preliminary edition printing at 49.7, up from 48.1 in April.
In other markets;
Singapore’s Straits Times Index regained 6.39 points, or 0.2%, to 3,302.24
Korea’s Kospi index added 7.04 points, or 0.4%, to 2,002
Australia’s S&P/ASX 200 restored 25.92 points, or 0.5%, to 5,519.46
