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Asia stocks move higher after China PMI; Nikkei ends up 0.4%

Published 10/24/2013, 02:46 AM
USD/JPY
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Investing.com - Asian stock markets came off the lowest levels of the session to trade mixed during late Asian trade on Thursday, following the release of upbeat Chinese manufacturing data.

Shares in mainland China and Hong Kong slumped for the second consecutive session amid renewed concerns over tight liquidity conditions.

During late Asian trade, Hong Kong's Hang Seng Index dropped 0.7%, Australia’s ASX/200 Index ended 0.31% higher, while Japan’s Nikkei 225 Index closed up 0.42%.

Midway through the session, data showed that China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, rose to a seven-month high of 50.9 in October from a final reading of 50.2 in September.

Analysts had expected the index to rise to 50.5 this month.

The measure remained above the 50.0-mark for the third consecutive month, indicating expansion in manufacturing activity.

In Hong Kong, the Hang Seng fell for the second consecutive session amid renewed fears over a cash crunch in the Chinese financial system after interbank lending rates moved higher for a second day.

China Construction Bank shares dropped 1.4%, Industrial and Commercial Bank of China declined 0.6%, while Agricultural Bank of China and China Minsheng Bank lost 1.7% and 1.4%.

Meanwhile, in Australia, the ASX/200 Index inched higher to re-approach a five-year high hit earlier in the week.

Australian commodity producers, which are heavily reliant on Chinese demand for raw materials, were mixed following the release of stronger-than-expected manufacturing data out of China.

Sundance Resources saw shares climb 4.5%, Rio Tinto added 0.3%, while mining giant BHP Billiton eased down 0.4%.

Elsewhere, in Tokyo, the Nikkei bounced off a three-week low hit earlier in the session as the yen moved off the session’s lows against the U.S. dollar, lifting sentiment.

USD/JPY clawed back from a session low of 97.16 to trade at 97.44. A weaker yen increases the value of overseas income at Japanese companies when repatriated, boosting the outlook for export earnings.

Automakers Mazda and Nissan saw shares rise 2% and 0.9% respectively.

Looking ahead, European stock market futures pointed to a higher open.

The EURO STOXX 50 futures pointed to a gain of 0.7% at the open, France’s CAC 40 futures added 0.45%, London’s FTSE 100 futures indicated a rise of 0.4%, while Germany's DAX futures pointed to a gain of 0.6% at the open.

The euro zone was to release data on manufacturing and service sector activity later in the trading day, while the U.S. was to produce data on initial jobless claims, the trade balance and new home sales.

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