Asia's major indices up following upbeat China PMI
Asia’s major indices gained to begin the week’s trade, following growth in China’s manufacturing activity for the month of November.
Asia’s major indices gained on early trade this Monday 02 December, on the back of increased manufacturing activity in China, according to official government data.
China’s National Bureau of Statistics revealed that the Purchasing Managers’ Index (PMI) hit 50.2 for the month of November, up from 49.3 in October.
Factory output is back to growth figures for the first time since March, thanks to higher domestic demand on the back of government stimulus packages. The November PMI also beats Reuters’ earlier estimate of 49.5.
As at 10am, the Shanghai Stock Exchange Composite Index (SSE) rallied 0.49% past the day's opening mark to 2,888.57, while the Hong Kong Hang Seng Index shot up 127.81 points, or 0.49% from Friday’s close of 26,346.49.
The Singapore Straits Times Index climbed 0.30% within 30 minutes of trading to 3207.45 from an opening figure of 3197.79.
Meanwhile the S&P/ASX 100 in Australia rose 0.65% from an opening mark of 5,679.00 to hit an intraday-high of 5,716.00.
Further up North, in Japan, the Nikkei 225 approached the 23,560.00 mark just right after lunch break, representing an increase of 171.15 or 0.73% from a baseline of 23,388.63.
A separate private survey called the Caixin/Markit PMI also supports the uptick in manufacturing output, with the index rising to 51.8 for the month of November, up from 51.7 in October. This also surpasses Reuters’ predictions of 51.4.
PMI figures above 50 tend to signal expansion in activity, while anything below tend to represent contraction.
Major manufacturers also experienced an early upswing
On the corporate front, major manufacturing company shares across the region also experienced positive movement, following the PMI update.
Chinese construction company China Railway Group Limited, which has a market capitalisation of 132.37 billion yuan, experienced an uptick of 0.70% to begin the day’s trade on the SSE. SAIC Motor, the country’s largest automobile manufacturer, saw share prices drop to a low of 23.10 yuan, before rallying to a high of 23.29 yuan at 11.10am.
On the Nikkei 225, Japanese car maker Toyota Motor Corp saw share prices rise 0.68% within 40 minutes of the market opening, while electronics giant Sony Corp managed an intraday peak price of JPY7,035, up 0.79% from the day’s opening rate of JPY6,980.
South Korean electronics company Samsung Group, listed on the Korea Exchange, achieved a high point of 51,300 Korean Won, as compared to an opening of 51,000 Korean Won.
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