Investing.com - Asian stock markets were mostly higher during late Asian trade on Thursday, as investors digested a pair of mixed reports on the Chinese manufacturing sector.
Appetite for riskier assets was also boosted after the Federal Reserve on Wednesday gave no indications on whether it will begin to taper its stimulus program in the near future.
During late Asian trade, Hong Kong's Hang Seng Index was up 0.7%, Australia’s ASX/200 Index ended 0.1% lower, while Japan’s Nikkei 225 Index rallied 2.5%.
Midway through the session, a report showed that China’s final HSBC Flash Purchasing Managers Index inched down to an 11-month low of 47.7 in July from 48.2 in June.
The disappointing data was published less than an hour after a government report showed that China’s manufacturing purchasing managers' index rose to 50.3 in July from 50.1 in June.
Above 50.0 indicates industry expansion, below indicates contraction.
Meanwhile, the Fed said on Wednesday that it would keep buying USD85 billion a month in mortgage and Treasury securities and added that the pace of economic growth is "modest".
Market players now looked ahead to highly-anticipated data on U.S. nonfarm payrolls due on Friday for indications of how the recovery in the U.S. labor market is progressing.
Market participants have closely been looking out for data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases.
In Tokyo, the Nikkei rallied sharply as traders continued to eye movements in the yen and in the Japanese government bond market.
USD/JPY rose to hit a session high of 98.53, moving off the previous session’s low of 97.57. A weaker yen increases the value of overseas income at Japanese companies when repatriated, boosting the outlook for export earnings.
Shares in Panasonic jumped 6.8% after reporting earnings that exceeded market expectations. Mazda Motor rose 3.4% after also reporting its results.
Japanese megabanks Mitsubishi UFJ Financial Group and Mizuho Financial Group climbed 4% and 4.9% respectively after report well-received earnings.
On the downside, shares of Honda Motor slumped 0.7% after reporting a drop in profits.
Meanwhile, in Hong Kong, the Hang Seng rose to a two-month high after a stronger-than-expected reading on Chinese factory activity.
Hong Kong’s blue-chip exporters led gains. Shares of Li & Fung, which is the world’s biggest supplier of toys to major U.S. retailers, rose 3%, while shares in Esprit Holdings, the Hong Kong-based retailer that counts Europe as its largest market added 3.2%.
Index heavyweight Tencent Holdings tacked on 2%.
Elsewhere, in Australia, the benchmark ASX/200 Index ended little changed as lenders came under pressure following a report that Australian banks are facing a new deposit insurance tax.
The big four banks all fell, with National Australia Bank shedding 1.6%, while ANZ Banking Group and Westpac Banking Group slumped 1.3% and 0.1%. Commonwealth Bank of Australia dropped 1.5%.
Looking ahead, European stock market futures pointed to a mildly lower open, as market players remained cautious ahead of the European Central Bank’s policy meeting later in the day as well as Friday’s U.S. nonfarm payrolls data.
The EURO STOXX 50 futures pointed to a gain of 0.4% at the open, France’s CAC 40 futures added 0.1%, London’s FTSE 100 futures indicated a gain of 0.3%, while Germany's DAX futures pointed to a rise of 0.4% at the open.
Later in the day, reports were to be released on manufacturing activity in Spain, Italy and the entire euro zone.
The U.S. was to publish official data on weekly unemployment claims, followed by a report by the Institute of Supply Management on manufacturing activity.
Appetite for riskier assets was also boosted after the Federal Reserve on Wednesday gave no indications on whether it will begin to taper its stimulus program in the near future.
During late Asian trade, Hong Kong's Hang Seng Index was up 0.7%, Australia’s ASX/200 Index ended 0.1% lower, while Japan’s Nikkei 225 Index rallied 2.5%.
Midway through the session, a report showed that China’s final HSBC Flash Purchasing Managers Index inched down to an 11-month low of 47.7 in July from 48.2 in June.
The disappointing data was published less than an hour after a government report showed that China’s manufacturing purchasing managers' index rose to 50.3 in July from 50.1 in June.
Above 50.0 indicates industry expansion, below indicates contraction.
Meanwhile, the Fed said on Wednesday that it would keep buying USD85 billion a month in mortgage and Treasury securities and added that the pace of economic growth is "modest".
Market players now looked ahead to highly-anticipated data on U.S. nonfarm payrolls due on Friday for indications of how the recovery in the U.S. labor market is progressing.
Market participants have closely been looking out for data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases.
In Tokyo, the Nikkei rallied sharply as traders continued to eye movements in the yen and in the Japanese government bond market.
USD/JPY rose to hit a session high of 98.53, moving off the previous session’s low of 97.57. A weaker yen increases the value of overseas income at Japanese companies when repatriated, boosting the outlook for export earnings.
Shares in Panasonic jumped 6.8% after reporting earnings that exceeded market expectations. Mazda Motor rose 3.4% after also reporting its results.
Japanese megabanks Mitsubishi UFJ Financial Group and Mizuho Financial Group climbed 4% and 4.9% respectively after report well-received earnings.
On the downside, shares of Honda Motor slumped 0.7% after reporting a drop in profits.
Meanwhile, in Hong Kong, the Hang Seng rose to a two-month high after a stronger-than-expected reading on Chinese factory activity.
Hong Kong’s blue-chip exporters led gains. Shares of Li & Fung, which is the world’s biggest supplier of toys to major U.S. retailers, rose 3%, while shares in Esprit Holdings, the Hong Kong-based retailer that counts Europe as its largest market added 3.2%.
Index heavyweight Tencent Holdings tacked on 2%.
Elsewhere, in Australia, the benchmark ASX/200 Index ended little changed as lenders came under pressure following a report that Australian banks are facing a new deposit insurance tax.
The big four banks all fell, with National Australia Bank shedding 1.6%, while ANZ Banking Group and Westpac Banking Group slumped 1.3% and 0.1%. Commonwealth Bank of Australia dropped 1.5%.
Looking ahead, European stock market futures pointed to a mildly lower open, as market players remained cautious ahead of the European Central Bank’s policy meeting later in the day as well as Friday’s U.S. nonfarm payrolls data.
The EURO STOXX 50 futures pointed to a gain of 0.4% at the open, France’s CAC 40 futures added 0.1%, London’s FTSE 100 futures indicated a gain of 0.3%, while Germany's DAX futures pointed to a rise of 0.4% at the open.
Later in the day, reports were to be released on manufacturing activity in Spain, Italy and the entire euro zone.
The U.S. was to publish official data on weekly unemployment claims, followed by a report by the Institute of Supply Management on manufacturing activity.