Asian shares mostly rallied on Monday after strong manufacturing data indicated a slowdown in China may be coming to an end, while the dollar climbed back towards the 100 yen mark.
Easing concerns about a possible military strike on Syria also lifted sentiment and reduced worries over crude supplies, sending prices lower.
Hong Kong climbed 2.04 percent, or 443.97 points, to 22,175.34, while Shanghai nudged up 0.07 points to 2,098.45 and Tokyo’s benchmark Nikkei index added 1.37 percent, or 184.06 points, to 13,572.92.
Sydney advanced 1.03 percent, or 53.3 points, to 5,188.3 but Seoul was flat, edging down 1.55 points to 1,924.81.
Data Saturday showed China’s official purchasing managers’ index (PMI) of manufacturing hit 51.0 last month, up from 50.3 in July and the best reading since April last year. Anything above 50 indicates growth, while anything below signals contraction.
On Monday HSBC confirmed its own PMI came in at 50.1.
The results follow a slew of recent upbeat data that suggest a slowdown in the world’s number two economy and key driver of global growth may have come to an end.
China’s gross domestic product grew 7.8 percent in 2012, the weakest since 1999, while growth in January-March dipped to 7.7 percent from 7.9 percent in the previous three months.
In the April-June quarter the figure slowed to 7.5 percent, fuelling concerns of a knock-on effect on the global economy.
However, the latest news suggests government measures to jolt the economy back into action are beginning to have an impact.
It also provides some much-needed support to regional markets after last month’s massive sell-off — particularly among emerging markets — caused by fears the US Federal Reserve will soon start to wind down its stimulus programme.
In forex trade the dollar climbed to 99.24 yen from 98.16 yen on Friday in New York, having sunk to below 97 yen at one point last week.
The euro bought $1.3216 and 131.17 yen compared with $1.3218 and 129.82 yen.
India’s rupee weakened against the dollar after data Friday showed the economy grew just 4.4 percent in the April-June quarter, below expectations. In afternoon trade it was sitting at 66.12 to the greenback, compared with 65.70 late Friday, when the central bank is reported to have stepped in to support the unit.
However, the currency is much stronger than the levels around 69 seen in the middle of last week.
Regional sentiment was also helped by lower expectations of a US-led intervention in Syria after the Middle Eastern country’s alleged chemical attack on its own civilians last month.
Global shares and currencies were hammered last week as dealers bet on a targeted strike, which they feared would spark a wider regional conflict.
However, Britain’s parliament rejected such a move last week, while on Saturday US President Barack Obama broke with decades of precedent to say he would seek approval from Congress for action, meaning nothing was likely to happen imminently.
On oil markets New York’s main contract, West Texas Intermediate for delivery in October, eased $1.46 to $106.19 a barrel in afternoon trade, while Brent North Sea crude for October fell $1.01 to $113.00.
Gold cost $1,392.81 an ounce at 0830 GMT, down from $1,395.50 late Friday.
In other markets:
– Taipei rose 0.21 percent, or 16.97 points, to 8,038.86.
Taiwan Semiconductor Manufacturing Co. added 1.49 percent to Tw$102.0 while Hon Hai Precision was 0.49 percent higher at Tw$81.6.
– Manila eased 0.22 percent, or 13.37 points, to 6,061.80.
Philippine Long Distance Telephone Co. fell 0.63 percent to 2,860 pesos and Ayala Corp. lost 2.02 percent to close at 534 pesos.
– Wellington jumped 1.22 percent, or 55.39 points, to end at 4,596.36.
Fletcher Building was up 2.85 percent at NZ$9.01, TradeMe gained 0.69 percent to NZ$4.38 and Telecom eased 1.32 percent to NZ$2.25.
Asian stocks mostly boosted by strong China data
