Asian shares mostly higher after Wall Street rise
HONG KONG—Asian markets mostly rose on Thursday, extending a recent rally, following another day of gains on Wall Street thanks to better-than-expected US manufacturing data.
The rises, which follow one of the worst ever Augusts for shares, came as market players grow a little more confident that the global economy is in a better state than they had feared.
However, a mixed bag of figures from Beijing indicated that while the world’s No. 2 economy was likely not heading for a hard landing, the outlook remained unclear.
Tokyo ended 1.18 percent, or 105.60 points, higher at 9,060.80 and Sydney added 0.26 percent, or 11 points, to 4,307.5. Seoul was flat, edging up 0.59 points to 1,880.70.
Hong Kong closed 0.25 percent, or 50.48 points, up at 20,585.33, but well off early highs, while Shanghai lost 0.44 percent, or 11.30 points, to 2,556.04 on fears rising prices could lead to further tightening measures by Beijing.
Regional stock markets continued their rebound as dealers digested better-than-expected US data showing that manufacturing in the US industrial heartland had picked up slightly.
The Institute of Supply Management-Chicago reported that its purchasing managers’ index came in at 56.5 in August, above analysts’ forecasts. Any number greater than 50 indicates expansion.
The figures sent Wall Street higher, with the Dow up 0.46 percent, the S&P 500 rising 0.49 percent and the Nasdaq gaining 0.13 percent.
Separately, payrolls firm ADP said the US private sector created 91,000 jobs in August, which fell short of expectations.
In China the official Purchasing Managers’ Index for August from the China Federation of Logistics and Purchasing (CFLP) rose to 50.9 from 50.7 in July.
The PMI from banking giant HSBC showed a similar improving trend, rising to 49.9 in August from 49.3 in July.
However, while the data will come as some relief that the economy is not in dire trouble, it also showed that manufacturers’ costs continued to rise.
The CFLP said its input price index rose to 57.2 in August from 56.3 in July, with raw materials and energy costs leading the rise, it said.
The increase in costs will contribute to pressure on the government as it struggles to rein in inflation, which in July hit a three-year high of 6.5 percent.
Adding to uncertainty was the CFLP index for new export orders last month, which declined to 48.3, from 50.4 in July – suggesting growth in overseas shipments may slow.
On currency markets the euro bought $1.4295 from $1.4374 late Wednesday in New York and 110.00 yen from 110.22.
The dollar was at 76.91 yen from 76.62.
The brighter outlook also provided some support for oil. New York’s main contract, light sweet crude for delivery in October, advanced 25 cents to $89.06 per barrel in the afternoon.
Brent North Sea crude for October delivery gained 15 cents to $115.00.
Gold closed at $1,825.50-$1,826.50 an ounce in Hong Kong, down from Wednesday’s close of $1,827.50-$1,828.50.
In other markets:
— Taipei rose 16.4 points, or 0.21 percent, to 7,757.76.
Hon Hai rose 1.09 percent to Tw$74.1 while Taiwan Semiconductor Manufacturing Co fell 1.15 percent to Tw$68.6.
— Manila rose 0.42 percent, or 18.09 points, to 4,366.59.
Philippine Long Distance Telephone added 1.26 percent to 2,420 pesos and San Miguel rose 1.84 percent to 127.10 pesos, but top-traded “A” shares of Lepanto Consolidated Mining fell 8.07 percent to 1.48 pesos.
— Wellington closed up 0.28 percent, or 9.20 points, at 3,332.27.
Telecom slipped 1.6 percent to NZ$2.50, Air New Zealand rose 0.9 percent to NZ$1.12 and casino operator Sky City gained 1.8 percent to NZ$3.42.
— Singapore closed down 18.08 points, or 0.63 percent, to 2,867.18.
United Overseas Bank fell 1.35 percent to 18.30 and Keppel Corp shed 1.40 percent to 9.17.
— Bangkok edged down 0.09 percent, or 0.92 points, to 1,069.13.
PTT gained 1 baht to 330, while Banpu was unchanged at 632 baht.
— Jakarta, Kuala Lumpur and Mumbai were closed for public holidays.
