Chinese stocks rose Friday to lead most Asian markets higher as data showing an expansion in the country’s manufacturing activity in March combined with inexpensive valuations and strong recent earnings to attract buyers.
The Shanghai CSI 300 Index recovered 49.44 points, or 1.5%, to 3,272.73, after two separate measures of the purchasing managers index for March showed that while manufacturing activity on the mainland was stabilizing, price pressures were easing.
The official PMI rose to 53.4 in March from 52.2 in February, while HSBC’s China PMI pushed up slightly to 51.8 in March from 51.7 in February, leading Qu Hongbin, HSBC’s chief economist for China, to say that the restrictive policies launched by Beijing over the past several months were working.
Financial stocks were among the big gainers, with Ping An Insurance Group Co. rising 3.6% in Shanghai and 4.8% in Hong Kong after Daiwa increased the insurer’s price target.
Agricultural Bank of China Ltd. climbed 1.1% and China Construction Bank Corp. added 0.8% in Shanghai on a positive earnings outlook, while the lenders’ Hong Kong-listed stocks rose 0.7% and 1.8%, respectively.
The Nikkei 225 Index subsided 46.71 points, or 0.5%, to 9,708.39, as lingering worries over radioactive groundwater found just outside a troubled reactor building at the Fukushima Daiichi nuclear-power complex prompted investors to lock in recent gains. The benchmark ended the week 1.8% higher.
Tokyo Electric Power Co. fell 3.7%, reversing an initial rise of more than 8% following news that the Japanese government is considering injecting public funds into the struggling utility.
The company, which owns the crippled Fukushima Daiichi nuclear plant that is at the center of the ongoing nuclear crisis, has slumped nearly 80% since the earthquake.
Honda Motor Co. fell 2.4% amid uncertainty over when the company will resume full production. Honda said it will restart operations at select auto assembly plants in Japan on April 11, but production of cars and parts will be limited to about 50% of pre-quake levels.
Hong Kong’s Hang Seng Index gained 274.38 points, or 1.2%, to 23,801.90
Shares of Cnooc Ltd. soared 4.6% and PetroChina Co. added 2% in Hong Kong, with Inpex Corp. climbing 4.3% in Tokyo, Woodside Petroleum Ltd. rising 1.3% in Sydney
Meanwhile, the euro continued to hold its own against the greenback amid continued expectations for a rate hike from the European Central Bank at next week’s policy meeting.
The euro was at $1.4161 U.S. from $1.4155 U.S. late Thursday in New York, and at 118.53 yen, from ¥117.70. The dollar was buying ¥83.69, compared with ¥83.15.
In other markets;
Taiwan’s Taiex Index advanced 21.83 points, or 0.3%, to 8,705.13
Korea’s Kospi Index added 14.31 points, or 0.7%, to 2,121.01
Singapore’s Straits Times Index picked up 14.62 points, or 0.5%, to 3,120.47
New Zealand’s NZX 50 improved 12.29 points, or 0.4%, to 3,452.14
Australia’s S&P/ASX 200 prospered 23.90 points, or 0.5%, to 4,861.80
