Asia markets rallied on Tuesday, with Hong Kong and Australian stocks jumping as an improvement in Chinese manufacturing activity helped improve sentiment.
Other regional markets also posted strong gains after European stocks climbed the previous day in thin volumes, shrugging off data showing a contraction in euro-zone manufacturing data.
Japanese markets were closed, as were their counterparts in Shanghai
In Hong Kong, however, the Hang Seng Index ballooned 443.02 points, or 2.4%, to 18,877.40
An official reading of China’s purchasing managers’ index released over the weekend showed manufacturing activity swung from a contraction to a mild expansion, helping to underpin the upbeat mood in Asia.
Australian manufacturing activity also improved slightly in December, according to an industry survey released Tuesday.
Resource sector stocks benefited across Asia as a weakened U.S. dollar pushed commodity prices higher.
Zijin Mining Group Co. climbed 3.1% in Hong Kong and Newcrest Mining Ltd. jumped 3.7% in Sydney on a rally in gold prices.
Cnooc Ltd. climbed 4.1% in Hong Kong, as Nymex crude-oil prices topped $100 a barrel in electronic trading. PetroChina Co. surged 4.5%, also getting a boost after Daiwa upgraded the stock to hold from underperform.
Other mining and metals stocks also climbed sharply, with Korea Zinc Co. soaring 6% in Seoul, mining major Rio Tinto Ltd. advancing 1.8% in Sydney and Jiangxi Copper Co. putting on 3.2% in Hong Kong.
South Korean shipbuilders jumped after suffering steep declines recently. Hyundai Mipo Dockyard Co. gained 3.7% and Daewoo Shipbuilding & Marine Engineering Co. surged 6.8%.
Several financials also ranked among the day’s gainers. Industrial & Commercial Bank of China Ltd. climbed 3% and China Life Insurance Co. added 4% in Hong Kong.
Elsewhere, Chinatrust Financial Holding Co. soared 4.6% in Taipei, KB Financial Group Inc. added 3.3% in Seoul and National Australia Bank Ltd. rose 1.7% in Sydney.
In Hong Kong, shares of Swire Pacific Ltd. declined 0.3% after UBS downgraded the stock to neutral from buy, citing a likely change in the valuation methodology after a spinoff of its property unit.
In other markets;
Taiwan’s Taiex Index marched ahead 101.17 points, or 1.5%, to 7,053.38
Korea’s Kospi Index picked up 49.04 opints, or 2.7%, to 1,875.41
Singapore’s Straits Times Index added 42.01 points, or 1.6%, to 2,688.36
New Zealand’s NZX 50 Index was unchanged at Friday’s 3,274.71
Australia’s S&P/ASX 200 Index acquired 44.60 points, or 1.1%, to 4,101.20
