Asian markets kicked off September on an upbeat note, with most regional indexes ending higher Wednesday as stronger manufacturing activity in China helped investors overcome worries about a slowdown in global activity.
Japan’s Nikkei 225 Index regained 102.96 points, or 1.2%, to 8,927.02.
Hong Kong’s Hang Seng Index put back 87.34 points, or 0.4%, to 20,623.83.
Heavyweight financials and materials sectors extended gains after the data, with BHP Billiton rising 2.3% and Rio Tinto adding 3.1%. Australian banking shares recorded sizable gains as well.
Japanese stocks keyed on gains in the technology sector and as the encouraging data from China helped to lift the mood.
However, political uncertainty tempered Japanese markets after Ichiro Ozawa, one of the most powerful members of the ruling Democratic Party of Japan, filed his candidacy for the party's leadership, making a political battle with Prime Minister Naoto Kan inevitable.
Shares of Toyota Motor Corp. were down 0.1%, but Honda Motor Co. added 1%, Sony Corp. rose 0.3% and Canon Inc. gained 1.2%.
Tokyo Gas was up 1% after it said Tuesday that it will buy a 1.5% stake in Mitsui O.S.K. Lines' vessel operations for transporting liquefied natural gas.
In Hong Kong, shares of Hutchison Whampoa rose 2.4% after exchange data showed Chairman Li Ka-shing added to his recent share purchases last week, raising his stake to 52.31% from 52.28%.
Among local banks, BOC Hong Kong shares rose 3.4%, helped by data showing yuan deposits in the city surpassed the 100-billion yuan mark for first time. HSBC Holdings added 0.9%.
In foreign-exchange markets, the Japanese yen fell back slightly against the U.S. dollar and the euro, as demand subsided after the upbeat economic data reported out of China and Australia.
The yen was also weakened by confirmation that Ozawa would mount a party leadership challenge against Kan.
The U.S. dollar was at 84.08 yen, from 83.83 yen in late trading Tuesday in New York, while the euro was at 107.55 yen, from 106.25 yen.
CHINA
Investors were heartened by China manufacturing data showing growth in the world's second-largest economy is stabilizing at a moderate but healthy pace, analysts said.
Shanghai’s CSI 300 Index slid 19.15 points, or 0.7%, to 2,884.04
Figures released Wednesday showed China's official Purchasing Managers Index rose to 51.7 in August from 51.2 in July. A separate PMI, put out by HSBC and compiled by Markit, rose to a reading 51.9 from 49.4, rebounding above the 50 threshold level and into growth after readings in July indicated the first contraction in manufacturing activity in 16 months.
Separate data showed that Australia's economy grew 1.2% in the second quarter from the first three months of 2010.
Still, the news failed to help support China's Shanghai Composite, where declines in small and medium-sized companies -- which had seen sizable gains throughout the summer -- dragged the index into negative territory.
In China, an extended slide for property developers dragged on the markets, with shares of Poly Real Estate dropping a further 1.3% -- a 5% slump in the past five sessions.
Elsewhere;
Singapore’s Straits Times Index put back 32.50 points, or 1.1% to 2,982.83
Korea’s Kospi index gained 21.94 points, or 1.3% to 1,764.69
Taiwan’s Taiex Index improved 51.97 points, or 0.7%, to 7,668.25
New Zealand’s NZX index moved 43.10 points, or 1.4%, higher to 3,077.10
Australia’s S&P/ASX 200 advanced 91.50 points, or 2.1%, to 4,495.70
