Chinese stocks advanced Tuesday, recouping some of their hefty losses in the previous session, as economic data showing an expansion in manufacturing activity helped boost sentiment.
Shanghai’s 300 Composite Index regained 13.43 points, or 0.5%, to 2,843.70. The advance helped most other markets in the region to rebound after the pronounced tumble in Shanghai dragged the rest of the region lower. But most markets regained less than what they lost in the previous session.
Chinese banking stocks led the rebound, with Industrial & Commercial Bank of China rising 2%, Bank of China gaining 1.9% and Bank of Communications climbing 3% in Shanghai. In Hong Kong, the stocks rose 0.4%, 1.3% and 1.6%, respectively.
Earlier in the day, China Federation of Logistics and Purchasing's version of the purchasing-managers index rose to a 16-month high of 54.0 in August from 53.3 in July. Another PMI indicator, the HSBC China Manufacturing PMI, also showed an increase, measuring 55.1 in August from 52.8 in July.
The Nikkei 225 index in Tokyo gained 37.53 points, or 0.4%, to 10,530.06.
In Hong Kong, the Hang Seng index picked up 148.11 points, or 0.8%, to 19,872.30.
Shares of Australia & New Zealand Banking Group climbed 3.3% as brokers upgraded their target prices for the stock. BHP Billiton rose 1.3% after UBS Investment upgraded the stock to "buy" from "neutral."
The gains in Sydney came after the Reserve Bank of Australia left interest rates unchanged, as widely expected. The central bank issued an upbeat economic assessment without providing any clues as to when it might tighten its policy.
Technology stocks were higher in Seoul and Taipei after recent encouraging results from U.S. technology companies. Heavyweight Samsung Electronics gained 3.6% in Seoul, while in Taipei, MediaTek jumped 6.9% and Quanta Computer rose 5.6%.
Shares of Hon Hai Precision rallied 6.8% on its strong second quarter net income announced Monday.
In Tokyo, exporters led the advance, with Nissan Motor up 2% and Toshiba 2.7% higher.
But shipping and steel stocks were lower in Tokyo, with Mitsui O.S.K. Lines down 2% and JFE Holdings 0.9% lower.
Foreign-exchange markets were in tight ranges, though the yen was a little weaker due to slightly improved risk appetite. The U.S. dollar was at 93.16 yen, against 92.98 yen in New York, while the euro was at 133.62 yen compared with 133.25 yen and $1.4339 U.S. versus $1.4333 U.S.
Elsewhere:
Singapore’s Straits Times Index advanced 3.49 points, or 0.1%, to 2,596.39
South Korea’s Kospi index prospered 31.21 points, or 2%, to 1,623.06
Taiwan’s Taiex gained 193.80 points, or 2.8%, to 7,019.75
New Zealand’s NZX 50 Index was off, however, by 13.32 points, or 0.4%, to 3,084.68
Australia’s S&P/ASX 200 picked up 35.50 points, or 0.8%, to 4,514.60.
