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Asia stocks higher despite weak China PMI; Nikkei ends up 1.8%

Published 03/24/2014, 03:49 AM
Asia stocks higher as weak China PMI boosts stimulus hopes
UK100
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AXJO
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JP225
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HK50
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BHP
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FMG
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AGO
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SONY
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CAJPY
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0939
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1398
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RIO
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DE30
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ESZ24
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F40
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EU50
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1YMZ24
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NQZ24
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3968
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SSEC
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6752
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6753
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0998
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Investing.com - Asian stock markets were higher on Monday, as weaker than expected Chinese manufacturing data fuelled hopes Beijing will unveil fresh stimulus measures to boost growth.

During late Asian trade, Hong Kong's Hang Seng Index surged 2%, China’s Shanghai Composite Index rallied 0.91%, Australia’s S&P/ASX 200 Index closed 0.17% higher, while Japan’s Nikkei 225 Index ended up 1.77%.

Midway through the session, data showed that China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to an eight-month low of 48.1 in March from a final reading of 48.5 in February.

In Tokyo, the Nikkei bounced off a six-week low as investors returned to the market to seek bargains and close out bets on lower prices.

Blue chip technology stocks led gains, with Sharp (6753.TOK) jumping 5.7%, Panasonic (6752.TOK) rising 6%, while Sony (6758.TOK) and Canon (7751.TOK) picked up 2.3% and 1.9% respectively.

Meanwhile, in Hong Kong, the Hang Seng rose sharply after weak Chinese manufacturing activity raised hopes that Beijing will unveil fresh monetary stimulus to combat slowing growth.

Shares in the financial sector were broadly higher, with China Construction Bank (0939.HK) gaining 3.2%, Industrial and Commercial Bank of China (1398.HK) climbing 3.1%, while China Merchants Bank (3968.HK) and China Citic Bank (0998.HK) added 3.3% and 2.2% respectively.

Elsewhere, in Australia, the ASX/200 Index erased losses in the final hour of trade to end modestly higher as gains in the mining sector boosted the benchmark index.

Fortescue Metals Group Ltd (FMG.ASX) and Atlas Iron Ltd (AGO.ASX) rose 2.2% and 1.6% respectively, while BHP Billiton Ltd (BHP.ASX) and Rio Tinto (RIO.ASX) inched up 0.5% and 0.2% respectively.

Looking ahead, European stock market futures pointed to a modestly lower open. The DJ Euro Stoxx 50 futures pointed to a loss of 0.4%, France’s CAC 40 futures dipped 0.4%, London’s FTSE 100 futures indicated a drop of 0.1%, while Germany's DAX futures shed 0.1%.

Across the Atlantic, U.S. equity markets pointed to a firmer open. The Dow 30 Industrial Average futures pointed to a rise of 0.25%, S&P 500 futures inched up 0.25%, while the Nasdaq 100 futures indicated a gain of 0.2%.

Investors continued to monitor events in Ukraine, where tension over moves by neighboring Russia in the Crimean region have heightened demand for safe haven assets.

The political standoff between the West and Russia following the annexation of Crimea escalated after the U.S. imposed harsher sanctions on Moscow. The European Union also agreed to wider sanctions against Russia.

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