Asian shares rose Monday, pushing major indexes to their strongest levels in months, as commodity-related stocks led the charge after a positive reading on Chinese manufacturing activity underpinned hopes for a recovery in global demand.
Japan's Nikkei 225 climbed 155.25 points, or 1.6% to 9,677.75, its strongest close since early October 2008.
Hong Kong's Hang Seng ended up 4%, or 717.59 points, at a more than eight-month high of 18,888.59, while the Hang Seng China Enterprises added 4.9% to end at 10,937.85, its highest level since early September.
Oil and metals prices also rose.
Investors in Asia found support following data showing China's manufacturing activity expanded in May for the third-consecutive month. The Purchasing Managers Index slipped to 53.1 in May from 53.5 in April but held above the expansionary 50 mark, the China Federation of Logistics & Purchasing said.
In China, PetroChina closed up 4.9% and Jiangxi Copper added 9.1%. PetroChina rose 5.6% in Hong Kong as well, while in Australia, BHP Billiton ended up 3.1% and Rio Tinto was 2.8% higher.
Japan's Inpex Corp. closed up 0.7% with Japan Petroleum Exploration up 4.1% and Nippon Steel up 2.5%.
On Globex, July crude-oil futures were up $1.39 at $67.70 U.S. a barrel after touching a nearly seven-month high of $67.77 U.S. as China's PMI data raised hopes the country's oil demand would remain robust.
The data also provided a boost to prices of industrial metals, with July copper up 5.8 cents at $2.26 U.S. a pound on Globex, the highest level since mid-October of last year.
June gold touched a three-month high of $985.20 U.S. an ounce on Globex, and was last at $983.50 U.S., up $4.70 from the New York close on follow-through buying from Friday's gains.
Among the trading firms in Tokyo, Marubeni Corp. climbed 7.2% and Mitsui & Co. tacked on 5.8% by the close.
Shipping stocks gained further in Tokyo, helped by the big rise of late in the Baltic Dry Index, a measure of demand for dry bulk goods. Nippon Yusen closed up 5% with Mitsui O.S.K. Lines up 6.4%. Orix saw a 0.5% gain in Tokyo even after the company said Friday it may write down its 10.7-billion yen ($112-million U.S.) investment in failed real estate business affiliate Joint Corp.
Korean financial stocks ended higher with KB Financial up 6.6% and Daewoo Securities up 6.3%, but shares of steelmaker Posco fell 0.4% and car-parts maker Hyundai Mobis fell 5.9%.
In Taiwan, AU Optronics shares gained 1.9% after the panel maker's chairman said he expected continued improvement for panel makers' operations in the third quarter.
Singapore commodity stock Olam climbed 13.4% in late trading after news it would raise 437.5 million Singapore dollars ($304 million) in gross proceeds by issuing about 273.5 million new shares to Singapore's state-owned investment company Temasek Holdings.
The Japanese yen made some gains in currency trade, even as Asian stock markets rose, with traders citing broadly cautious sentiment on the U.S. dollar of late, amid worries about the U.S.'s fiscal health. The U.S. dollar was at 95.11 yen, against 95.27 yen late Friday in New York, with the euro at $1.4154, compared with $1.4141, off an early low of $1.4099.
Elsewhere:
China’s Shanghai Composite Index returned from a holiday to gain 98.63 points, or 3.6%, to 2,858.34
Singapore’s Straits Times Index went higher by 50.99 points, or 2.2% to 2,380.07
South Korea’s Kospi index picked up 19.21 points, or 1.4% to 1,415,10
Taiwan’s Taiex came back from its holiday to advance 63.66, or 0.9%, to 6,954.10
New Zealand’s NZX 50 Index had the day off
Australia’s S&P/ASX 200 tacked on 76.30 points, or 2% to 3,894.40
