|
 After a sluggish start the majority of markets across the region
struggled ahead through the session, pushing MSCI's broadest index
of Asia-Pacific shares outside Japan up 0.4 percent.
Japan's Nikkei recouped early losses to add 0.05 percent, while
Shanghai firmed 0.2 percent. South Korea outperformed with a rise of
1 percent, led by Samsung Electronics Co Ltd and Hyundai Motor Co.
"Market heavyweights closely follow global economic recovery, and
the manufacturing surveys in the U.S. and China have provided
positive signals," said Hyundai Securities market analyst Bae
Sung-young.
The performance of manufacturing surveys (PMI) tend to be reliable,
and timely, leading indicators of output trends and are closely
watched by economists.
So there was relief that readings from the United States, China and
Japan all rose strongly in the month. The U.S. PMI was a
particularly pleasant surprise as it climbed to a four-year peak of
57.5.
That helped offset an unexpected dip in Markit's euro zone PMI to
52.8 in June from May's 53.5.
David Hensley, an economist at JPMorgan, said the PMI's taken as a
whole pointed to a quickening in global industrial output, perhaps
to as much as a 5 percent annualised pace.
"Emerging Asia lies at the centre of global manufacturing, so any
acceleration in global activity normally would be confirmed there,"
he added.
"The continued recovery in China's manufacturing PMI is a positive
sign, both outright and because China's survey typically is aligned
with the broader EM complex. The trend in official data for EM Asia
ex China remains murky, however."
The data were still not enough to enliven Wall Street where the Dow
ended Monday off 0.06 percent and the S&P 500 0.01 percent, while
the Nasdaq added 0.01 percent.
Financial spreadbetters expected Britain's FTSE 100, Germany's DAX
and France's CAC 40 to all start around a tenth of a percent higher
on Tuesday.
The disappointing euro zone PMI's restrained the euro, while the
better Chinese data boosted commodity-exposed currencies including
the Australian dollar.
The euro was flat at $1.3594 while the Aussie was up at $0.9421
having touched a three-month peak overnight.
[to top of second column] |
Against the yen, the common currency stood at 138.58, while the
dollar fetched 101.95.
That left the dollar index a shade firmer at 80.310, though well
within 80.000-81.000 range seen since May.
The economic diary is bare for much of Asia on Tuesday though
Japanese Prime Minister Shinzo Abe should detail more of his
so-called "Third Arrow" policies including phased corporate tax
cuts, public pension reforms and proposed dance hall deregulation.
Given that many have already been leaked or announced by officials,
the risk is that the measures are likely to receive a lukewarm
response from investors. Still, the market will be keen to see how
they are fleshed out and implemented.
In commodity markets, gold was underpinned by geopolitical tensions
amid the increasing violence in Iraq, while platinum eased as South
African miners' union declared an official end to a five-month
strike.
Spot gold was sitting tight at $1,314.60 an ounce as the market
consolidated last week's 3 percent jump.
Brent crude edged back from nine-month highs as concerns waned that
a Sunni Islamist insurgency in Iraq would cut the country's oil
exports.
Brent dipped 18 cents to $113.94 a barrel and U.S. crude for August
delivery shed 34 cents to $105.83.
(Editing by Shri Navaratnam)
[© 2014 Thomson Reuters. All rights
reserved.] Copyright
2014 Reuters. All rights reserved. This material may not be
published, broadcast, rewritten or redistributed.
 |
