--Asian markets rise on economic data, easing Europe concerns
--Nikkei up 0.3%, S&P ASX 200 up 1.3%, Kospi 0.3% higher
--Miners rise on strengthening commodity prices
(Updates prices, adds quote, HSBC PMI)
By Daniel Inman
Asian markets etched out small gains Monday as a rally in commodity
stocks was slightly offset by continued weakness in the Chinese
manufacturing sector.
Investors were digesting two sets of data, both showing a slowdown in
Chinese manufacturing. The official purchasing managers' index was
released over the weekend and was 50.2. Though the figure was just
above 50, indicating a small increase in manufacturing activity, it
was the worst figure since November.
The rival HSBC PMI, which focuses more on small- and medium-sized
companies than the official data, came out Monday morning and showed a
weakening in June to 48.2, suggesting a contraction in activity,
compared with 48.4 in May.
The PMI data is "not horrible, but it isn't showing a rebound," said
Gigi Chan, manager of Threadneedle's $100 million China Opportunities
Fund in Singapore. "Some people had hoped that some of the stimulus
might have kicked in."
The China Shanghai Composite dipped as soon as the HSBC data were
released, before pulling up to take a 0.1% gain. Hong Kong's Hang Seng
Index was closed for a public holiday.
Australia's S&P ASX 200 gained 1.3%, South Korea's Kospi was 0.3%
higher, and Singapore's Straits Times Index was up 0.7%.The Nikkei
Average was up just 0.3%, after the Bank of Japan's quarterly tankan
survey, a measure of business confidence, exceeded expectations. The
survey's headline diffusion index for manufacturers improved to a
reading of minus one, compared with a minus three forecast by
economists. The strong result in the tankan reflects "a steady
recovery in exports, especially in the auto industry," said RBS
Securities chief economist Junko Nishioka. As the car industry has a
broad industry base, its recovery is "creating a ripple effect
throughout other sectors of the Japanese economy."
Gains in the Japanese benchmark were led by trading companies such as
Marubeni and Itochu, up 1.9% and 1.6%, respectively, and energy
companies like JX Holdings, which climbed 1.5%.
Concerns over the European debt crisis were weaker, though the
euphoria that immediately followed the summit of European leaders late
last week, moderated in Asia as investors started to think about the
actual implementation of the bank bailout plan.
The euro weakened Monday. At $1.2620, the single currency gave up some
of the 1.8% gain that it made Friday when it climbed to $1.2661.
Miners across the region benefitted from an increase in commodity
prices; copper on Friday touched its highest price since late May. The
effect was most apparent on the resource-heavy Australian market,
where Rio Tinto and BHP Billiton lead a broad advance in mining
stocks, climbing 0.7% and 1.4%, respectively.
Gold dropped to $1592.70 an ounce Monday, eating into some of the 3.5%
gain it made Friday. The increased value of the precious metal proved
a boon for gold miners. Newcrest Mining gained 4% in Australia.
Write to Daniel Inman at Daniel.Inman@wsj.com
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(END) Dow Jones Newswires
July 02, 2012 01:05 ET (05:05 GMT)
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