Asian shares rise on China economic data
Wednesday, 4 January 2012
HONG KONG, Jan 3 (AFP): Asian shares mostly rose Tuesday, taking a lead from European markets which started 2012 in positive territory and after China announced better-than-expected manufacturing data.
Australian shares closed up 1.1 per cent, or 44.6 points, at 4,101.20, Seoul added 2.69 per cent, or 49.04 points, to end at 1,875.41, while Hong Kong ended 2.4 per cent higher, or 443.02 points, at 18,877.41.
Financial markets in mainland China, Japan and Thailand were closed for public holidays.
"We are starting the new year on a positive note and data such as better than expected PMI (purchasing managers index) out of China over the weekend will help to give investors new confidence," said Jason Hughes, head of premium client management at IG Markets.
"However, the major issues of 2011 still have to be resolved with meaningful solutions required from Europe-until this is finally put to bed we are likely to have an amount of uncertainty remaining around global markets."
China's manufacturing unexpectedly rebounded in December on holiday shopping, as the world's number two economy showed some resilience despite strife in key export markets.
The purchasing managers index (PMI) reached 50.3 in December, the China Federation of Logistics and Purchasing said in a statement last Sunday.
A reading above 50 indicates the sector is expanding.
"This is quite encouraging because China and India's upbeat manufacturing indicators for December suggest Europe's debt problems haven't had a big negative effect on Asian exports and doomsday scenarios have not yet materialised," Lim Hosang, an economist at Samsung Futures in Seoul, told Dow Jones Newswires.
Meanwhile, European shares closed higher Monday after figures showed private consumption in Germany was at its strongest level for more than a decade in 2011, despite the ongoing eurozone crisis.
Separately, official data showed the number of people in work hit a record 41.04 million, with more than half a million jobs created last year.
Positive US economic data last week, including rising home sales, also helped buoy markets as investors look for signs of resurgence in the world's biggest economy.
In early trade Tuesday, London's benchmark FTSE 100 index gained 1.84 per cent, Frankfurt's DAX 30 added 0.80 per cent and the Paris CAC 40 rose 0.28 per cent.
However, the eurozone's still-unresolved fiscal woes continue to weigh on investor sentiment with observers saying the debt crisis would loom over markets into 2012.
Spain, one of several eurozone economies struggling to keep its massive debt under control, last week announced 8.9 billion euros in budget cuts and higher taxes as it moves to curb a bigger-than-expected public deficit.
On currency markets, the euro rose to $1.2983 from $1.2939, while the dollar was trading at 76.83 yen from 76.98 yen late last Friday in New York.
The European unit also firmed against the yen, changing hands at 99.75 against 99.62 late last Friday.
New York's main oil contract, light sweet crude for February delivery, gained $1.64 to $100.47, while Brent North Sea crude for February delivery added $1.32 to $108.70.
Gold stood at $1,590.12 an ounce at 0825 GMT, against $1,579.00.
Taiwan's weighted index rose 1.46 per cent, or 101.17 points, at 7,053.38.
Leading IC design house MediaTek was 2.56 per cent higher at Tw$280.0 while smartphone maker HTC gained 3.14 per cent at Tw$492.5.
Philippine shares closed 0.57 per cent higher, or 25.14 points, at 4,422.22.
Digital Telecommunications Philippines gained 0.62 per cent to 1.61 pesos while Philippine Long Distance Telephone Co added 0.46 per cent to 2,580 pesos.
Australian shares closed up 1.1 per cent, or 44.6 points, at 4,101.20, Seoul added 2.69 per cent, or 49.04 points, to end at 1,875.41, while Hong Kong ended 2.4 per cent higher, or 443.02 points, at 18,877.41.
Financial markets in mainland China, Japan and Thailand were closed for public holidays.
"We are starting the new year on a positive note and data such as better than expected PMI (purchasing managers index) out of China over the weekend will help to give investors new confidence," said Jason Hughes, head of premium client management at IG Markets.
"However, the major issues of 2011 still have to be resolved with meaningful solutions required from Europe-until this is finally put to bed we are likely to have an amount of uncertainty remaining around global markets."
China's manufacturing unexpectedly rebounded in December on holiday shopping, as the world's number two economy showed some resilience despite strife in key export markets.
The purchasing managers index (PMI) reached 50.3 in December, the China Federation of Logistics and Purchasing said in a statement last Sunday.
A reading above 50 indicates the sector is expanding.
"This is quite encouraging because China and India's upbeat manufacturing indicators for December suggest Europe's debt problems haven't had a big negative effect on Asian exports and doomsday scenarios have not yet materialised," Lim Hosang, an economist at Samsung Futures in Seoul, told Dow Jones Newswires.
Meanwhile, European shares closed higher Monday after figures showed private consumption in Germany was at its strongest level for more than a decade in 2011, despite the ongoing eurozone crisis.
Separately, official data showed the number of people in work hit a record 41.04 million, with more than half a million jobs created last year.
Positive US economic data last week, including rising home sales, also helped buoy markets as investors look for signs of resurgence in the world's biggest economy.
In early trade Tuesday, London's benchmark FTSE 100 index gained 1.84 per cent, Frankfurt's DAX 30 added 0.80 per cent and the Paris CAC 40 rose 0.28 per cent.
However, the eurozone's still-unresolved fiscal woes continue to weigh on investor sentiment with observers saying the debt crisis would loom over markets into 2012.
Spain, one of several eurozone economies struggling to keep its massive debt under control, last week announced 8.9 billion euros in budget cuts and higher taxes as it moves to curb a bigger-than-expected public deficit.
On currency markets, the euro rose to $1.2983 from $1.2939, while the dollar was trading at 76.83 yen from 76.98 yen late last Friday in New York.
The European unit also firmed against the yen, changing hands at 99.75 against 99.62 late last Friday.
New York's main oil contract, light sweet crude for February delivery, gained $1.64 to $100.47, while Brent North Sea crude for February delivery added $1.32 to $108.70.
Gold stood at $1,590.12 an ounce at 0825 GMT, against $1,579.00.
Taiwan's weighted index rose 1.46 per cent, or 101.17 points, at 7,053.38.
Leading IC design house MediaTek was 2.56 per cent higher at Tw$280.0 while smartphone maker HTC gained 3.14 per cent at Tw$492.5.
Philippine shares closed 0.57 per cent higher, or 25.14 points, at 4,422.22.
Digital Telecommunications Philippines gained 0.62 per cent to 1.61 pesos while Philippine Long Distance Telephone Co added 0.46 per cent to 2,580 pesos.