2012.05.02 06:21:09 UPDATE: Asian Shares Rise On Upbeat US, China Data; Resources Plays Up

--Regional markets rise as investors cheer upbeat U.S., China manufacturing indicators --Resource plays and some exporters outperform --Dollar remains well bid as expectations of more stimulus from Fed fade (Adds information, quotes, updates/adds market levels) By Shri Navaratnam and Ga-Woon Philip Vahn Of DOW JONES NEWSWIRES SINGAPORE (Dow Jones)--Asian stock markets were higher Wednesday as upbeat manufacturing data in the U.S. and China restored some investor confidence in the global economy, with resource plays and exporters outperforming. Investors were encouraged by the Institute of Supply Management's purchasing managers index reading for April, which topped forecasts and sent the Dow Jones Industrial Average to its best close in more than four years on Tuesday. "The better-than-expected manufacturing figures come after a series of disappointing data and the surprise among investors is evident across commodities and risk assets," said Justin Harper, Singapore-based strategist at IG Markets, in a note. Firm Chinese manufacturing data on Tuesday and a rise in April's final HSBC China Manufacturing Purchasing Managers Index also underpinned gains for regional stocks, with the latest figures indicating that growth in Asia's biggest economy is picking up after a lull over the past few months. The final HSBC China Manufacturing PMI, a gauge of nationwide manufacturing activity, rose to 49.3 in April compared with 48.3 in March. "China's real economy is recovering," said Lu Ting, economist of Bank of America - Merrill Lynch. Lu still expects Beijing to further release liquidity by cutting the reserve requirement ratio and boost investment in infrastructure and public housing. Japan's Nikkei Stock Average was up 0.4%, Australia's S&P/ASX 200 gained 0.2% and South Korea's Kospi rose 0.8%. Hong Kong's Hang Seng Index advanced 1.1%, while China's Shanghai Composite added 1.6% and India's Sensex gained 0.4%. Dow Jones Industrial Average futures were up four points in screen trade. Resources and energy stocks advanced on the back improved sentiment on the U.S. economy. Sumitomo Metal Mining advanced 0.3% and Japan Petroleum Exploration added 1.5% in Tokyo, while S-Oil climbed 3.7% in Seoul. In Sydney, BHP Billiton rose 0.8% and Woodside Petroleum added 1.9%, while Cnooc rose 1.8% in Hong Kong. The improving U.S. and Chinese manufacturing picture provided a lift to major exporters, primarily in Seoul and Taipei. Samsung Electronics rose 1.4% and LG Electronics gained 1.6% in Seoul, while Asustek jumped 6.3% in Taipei. The Tokyo market struggled despite some support from the yen's retreat against the dollar as many investors were unwilling to commit wholeheartedly due to the domestic holidays on Thursday and Friday. Exporters were mixed, with Toyota Motor up 0.8%, while Canon fell 0.5%. Brokerage stocks surged in Shanghai on news that the securities regulator will reduce trading fees for A-shares starting June 1. The move, which is estimated to save CNY3 billion in trading fees a year, will likely boost transaction volumes, meaning higher commissions for brokerage firms. Citic Securities gained 3.1% and Haitong Securities added 3.7%. The U.S. dollar remained well-bid against the yen and the euro after the strong manufacturing data doused expectations of further stimulus measures from the U.S. Federal Reserve. Mitul Kotecha, strategist at Credit Agricole, said the dollar is being supported by higher U.S. Treasury yields. However, the greenback may not enjoy a sustained uptick, he added. "The surprisingly robust April ISM manufacturing survey following the disappointing Chicago PMI for the same month highlights that recovery is not straightforward, suggesting that U.S. dollar gains will also not be straightforward," Kotecha said in a note The dollar was recently at Y80.21, from Y80.09 late Tuesday in New York. The single currency was fetching $1.3226 against the greenback, from $1.3236, and at Y106.09 against the yen, from Y106.05. Spot gold was at $1,659.40 per troy ounce, down $2.80 from its New York settlement on Tuesday. June Nymex crude oil futures, which rose to a five-week high of $106.43 per barrel on Tuesday, were recently off 23 cents at $105.93 a barrel on Globex. -Shri Navaratnam, Dow Jones Newswires; +65-6415-4142; shri.navaratnam@dowjones.com TALK BACK: We invite readers to send us comments on this or other financial news topics. Please email us at TalkbackAsia@dowjones.com. Readers should include their full names, work or home addresses and telephone numbers for verification purposes. We reserve the right to edit and publish your comments along with your name; we reserve the right not to publish reader comments. (END) Dow Jones Newswires May 02, 2012 00:21 ET (04:21 GMT)