Asia Pacific Market: Stocks rally on strong manufacturing data

Asia Pacific market advanced on Monday, 02 September 2013, as appetites for risk assets underpinned on boosting confidence in the global economic recovery after manufacturing in China to euro-zone expanded at a faster pace than estimated in August.

The Chinese official data that showed China's economy is strengthening after a two-quarter slowdown, with a manufacturing gauge rising to a 16-month high in August as new orders jumped and overseas demand rebounded. The Purchasing Managers' Index was at 51.0, the National Bureau of Statistics and China Federation of Logistics and Purchasing said yesterday in Beijing. A separate manufacturing PMI released today by HSBC Holdings Plc. and Markit Economics rose to 50.1 last month from 47.7 in July, the biggest gain in three years and the first reading above 50 since April.

In Europe, the euro-zone manufacturing PMI rose to 51.4 in August from 50.3 in July, a slight upward revision from the 51.3 previously announced.

Meanwhile, buying appetite received further support on receding risk of military strike in Syria after U.K. lawmakers voted against British involvement and as US president Obama decided to get congressional approval. The move is at least delayed and would even face the chance of disapproval from Congress.

Among Asian bourses, the Tokyo market climbed up, led by export related players, thanks to yen depreciation against the greenback to a one-week low and positive China manufacturing PMI data. The benchmark Nikkei 225 index ended up 1.37% to 13,572.92 while the Topix index of all first-section issues rose 1.06% to 1,117.78.4

The yen fell 1.2% to 99.32 per dollar and reached 99.43, the weakest level since Aug. 2. Japan's currency slid 1.1% to 131.26 per euro.

The Japan Automobile Dealers Association said on Monday that domestic sales of new cars, trucks and buses declined 6.4% from a year earlier in August, as demand remained subdued following the expiry of a government incentive program for fuel-efficient vehicles. Sales totalled 217,411 vehicles in August, down from 232,372 in the same month last year, falling for the fourth consecutive month.

The Australian share market closed harp higher, on the back of strong Chinese manufacturing data released on the weekend. The All Ordinaries Index (XAO) added 52.7 points or 1.03% by close to 5178.

Shares of Surfwear retailer Billabong rose 14.1% after New York based hedge fund Coastal Capital International, which holds a 5% stake in the company, called for the removal of BBG's company directors. CCI indicated it wanted to ditch and replace the majority of BBG's boards apart from founder Gordon Merchant and majority shareholder Colette Paul.

Indian benchmark indices surged on the first trading session of September month as firmness in global stocks boosted sentiment. Metal stocks rose after data showed a China's manufacturing gauge rose to a 16-month high in August. Bank stocks were mixed. IT major TCS scaled record high. Index heavyweight and cigarette maker ITC rose.

The Sensex was up 250.47 points or 1.35%, up close to 190 points from the day's low and off about 70 points from the day's high. The market breadth, indicating the overall health of the market, was strong. All the thirteen sectoral indices on BSE were in the green.

Elsewhere, New Zealand's NZX 50 Index gained 1.2%. Hong Kong's Hang Seng Index jumped 2% and China's Shanghai Composite Index was little changed. Singapore's Straits Times Index added 0.8% and Taiwan's Taiex Index rose 0.2%. South Korea's Kospi index slid 0.1%.

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