Asian markets were higher on Thursday as China's manufacturing sector showed surprising strength and helped the region build on Wall Street gains overnight.
Asian shares gain on HSBC China PMI recovery, Hang Seng up 0.74%Asian shares gain on strong HSBC China PMI
Hong Kong's Hang Seng Index was up 0.74% and the Shanghai Composite gained 0.41% after HSBC's China preliminary manufacturing Purchasing Managers Index came out 49.7 for May, a sharp increase from a final reading of 48.1 in April.
The improvement was broad-based with both new orders and new export orders back in expansionary territory," said HSBC chief China economist Qu Hongbin.
"Disinflationary pressures also eased over the month and output prices increased for the first time since November 2013. However, the employment index fell further to 47.3, which implies that this month's uptick in sentiment has not yet filtered through to the labour market.
Some tentative signs of stabilization are emerging, partly as a result of the recent mini-stimulus measures and lower borrowing costs. But downside risks to growth remain, particularly as the property market continues to cool. We think more policy easing is needed to put a floor under growth in the coming months."
Although the measure remains just below 50, indicating manufacturing is still contracting, the latest number points to stabilization in activity among China's factories after a string of larger declines in the reading.
In Japan, the Nikkei 225 added 1.6%, outperforming the rest of the region as the market was helped by a softer local currency.
Overnight, U.S. stocks shot up after the minutes from the Federal Reserve's April meeting revealed monetary authorities are working on ways to wind down ultra-loose policy though rate hikes aren't on the drawing board as of yet.
The Dow 30 rose 0.97%, the S&P 500 index rose 0.81%, while the NASDAQ Composite Composite index rose 0.85%.
The Federal Reserve Board of Governors agreed at their April policy meeting that the time has come to discuss ways to wrap up monetary stimulus programs, though rate hikes aren't on the drawing board yet, as no inflationary risks have become evident due to ultra-loose policies.
Stocks rose on the somewhat dovish report.
The Fed is currently purchasing $45 billion in Treasury and mortgage debt a month to spur recovery, a monetary policy tool known as quantitative easing that suppresses long-term interest rates, weakening the dollar while boosting stock prices on hopes investing and hiring will follow suit.
Monetary authorities agreed at their April meeting to seek out a mix of tools to normalize monetary policy and wind down the bond-buying program, which came as little surprise, though the U.S. central bank didn't spell out exactly when benchmark interest-rate hikes would begin, which drew applause on Wall Street.
On Thursday, the U.S. is to release its weekly report on initial jobless claims and private sector data on existing home sales.
www.punjiniveshonline.com
Asian shares gain on HSBC China PMI recovery, Hang Seng up 0.74%Asian shares gain on strong HSBC China PMI
Hong Kong's Hang Seng Index was up 0.74% and the Shanghai Composite gained 0.41% after HSBC's China preliminary manufacturing Purchasing Managers Index came out 49.7 for May, a sharp increase from a final reading of 48.1 in April.
The improvement was broad-based with both new orders and new export orders back in expansionary territory," said HSBC chief China economist Qu Hongbin.
"Disinflationary pressures also eased over the month and output prices increased for the first time since November 2013. However, the employment index fell further to 47.3, which implies that this month's uptick in sentiment has not yet filtered through to the labour market.
Some tentative signs of stabilization are emerging, partly as a result of the recent mini-stimulus measures and lower borrowing costs. But downside risks to growth remain, particularly as the property market continues to cool. We think more policy easing is needed to put a floor under growth in the coming months."
Although the measure remains just below 50, indicating manufacturing is still contracting, the latest number points to stabilization in activity among China's factories after a string of larger declines in the reading.
In Japan, the Nikkei 225 added 1.6%, outperforming the rest of the region as the market was helped by a softer local currency.
Overnight, U.S. stocks shot up after the minutes from the Federal Reserve's April meeting revealed monetary authorities are working on ways to wind down ultra-loose policy though rate hikes aren't on the drawing board as of yet.
The Dow 30 rose 0.97%, the S&P 500 index rose 0.81%, while the NASDAQ Composite Composite index rose 0.85%.
The Federal Reserve Board of Governors agreed at their April policy meeting that the time has come to discuss ways to wrap up monetary stimulus programs, though rate hikes aren't on the drawing board yet, as no inflationary risks have become evident due to ultra-loose policies.
Stocks rose on the somewhat dovish report.
The Fed is currently purchasing $45 billion in Treasury and mortgage debt a month to spur recovery, a monetary policy tool known as quantitative easing that suppresses long-term interest rates, weakening the dollar while boosting stock prices on hopes investing and hiring will follow suit.
Monetary authorities agreed at their April meeting to seek out a mix of tools to normalize monetary policy and wind down the bond-buying program, which came as little surprise, though the U.S. central bank didn't spell out exactly when benchmark interest-rate hikes would begin, which drew applause on Wall Street.
On Thursday, the U.S. is to release its weekly report on initial jobless claims and private sector data on existing home sales.
www.punjiniveshonline.com
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