US manufacturing sends Asian markets higher

Forecast-busting manufacturing data in the United States boosted Asian stocks yesterday, with the figures easing concerns over the state of the world’s biggest economy.
The news came a day after two surveys in China showed similar results, raising hopes that the global economy is not headed for a slowdown in the second half of the year.
Tokyo surged 1.52 percent, or 135.82 points, to 9,062.84, while Sydney rose 0.82 percent, or 37 points, to 4,532.7.
Hong Kong added 1.19 percent, or 245.09 points, to end at 20,868.92 and Shanghai rose 1.25 percent, or 32.89 points, to 2,655.78, with auto shares boosting the index on the back of a huge jump in sales last month.
The US Institute of Supply Management on Wednesday said its manufacturing index rose to 56.3 points, from 55.5 percent in July, a much larger jump than the 52.9 percent predicted by economists.
A reading above 50 percent indicates an expanding manufacturing sector while anything below 50 indicates a decline.
Earlier Wednesday in China the official Purchasing Managers Index rose to 51.7 in August from 51.2 in July, the first rise in the index following three months of declines.
And the HSBC China Manufacturing Purchasing Managers Index hit a three-month high of 51.9 in August from 49.4 in July.
The upbeat data from the world’s two biggest economies gave a much needed fillip to traders, whose confidence in the global recovery have been dented by a series of poor data in the past few months.
“As markets flip from risk on to risk off almost on a daily basis the question for today is how sustainable the rally in risk trades will prove to be against the background of so much policy and growth uncertainty,” Credit Agricole Investment and Corporate Bank said in a note, according to Dow Jones Newswires.
The Dow, which suffered its worst August in nine years, surged 2.54 percent on the back of the latest data.
Traders ignored a report from payrolls firm ADP showing US private sector employment dropped in August for the first time in seven months while government data revealed a bigger-than-expected drop in construction spending.
However, nervousness continued to linger ahead of key non-farm payroll figures due to be released in the US on Friday, with most forecasts for a rise in unemployment.
On currency markets the dollar succumbed to profit-taking after a rally in New York. The greenback changed hands at 84.51 yen in Tokyo morning trade before falling back to 84.29, below its 84.42 yen overnight.
The euro held firm at 1.2798 dollars, compared with 1.2807 dollars in New York, as stock market gains overnight in the US fuelled risk appetite.
The European single currency was flat at 108.14 yen.
Oil edged lower on profit-taking after soaring overnight. New York’s main contract, light sweet crude for October delivery, slid six cents to 73.85 dollars a barrel.
Brent North Sea crude for delivery in October fell 24 cents to 76.11 dollars.
Gold closed at 1,247.50-1,248.50 dollars an ounce, down from Wednesday’s closing price of 1,249.30-1,250.30 dollars.

In other markets:

• Singapore closed up 0.13 percent, or 3.83 points, at 2,986.66.
Keppel Land fell 0.26 percent to 3.88 Singapore dollars while Jardine Cycle and Carriage rose 4.58 percent to 34.70.
• Seoul closed 0.63 percent, or 11.04 points, higher at 1,775.73.
• Taipei rose 0.69 percent, or 52.57 points, to 7,720.82.
UMC rose 1.93 percent to 13.2 Taiwan dollars while Taiwan Semiconductor Manufacturing Company was 0.68 percent higher at 59.5.
• Manila added 2.04 percent, or 73.21 points, to close at 3,666.54.
The index hit its highest since December 2007, helped by Philippine Long Distance Telephone’s 0.4 percent rise to 3,450 pesos and Ayala Land’s 1.0 percent jump to 16.50.
• Jakarta dropped 0.42 percent, or 13.17 points, to 3,122.14.
• Kuala Lumpur closed up 0.64 percent, or 9.11 points, at 1,441.07.
Low-cost airline AirAsia rose 8.0 percent to 1.89 ringgit, builder UEM Land added 7.60 percent to 1.84 while glove-maker Top Glove shed 1.80 percent to 6.08.
• Wellington rose 0.17 percent, or 5.38 points, to 3,082.48.
Air New Zealand rose 1.59 percent to 1.28 New Zealand dollars, while Contact Energy was unchanged at 5.61 and Telecom fell 0.98 percent to 2.03. (AFP)