Australia led most Asian shares higher Tuesday, after modest
improvement in Chinese manufacturing activity dispersed some
concerns about sluggish growth in China.
Australia's S&P/ASX 200 gained 0.7%, with the market paring
early losses in the lead up to China's economic data. China is
Australia's largest trading partner so worries over the pace of
China's economic growth have weighed heavily on the Australian
dollar and iron-ore producers.
The preliminary HSBC China Manufacturing Purchasing Managers
Index rose to 50.5 in September, compared with a final reading of
50.2 in August, HSBC Holdings PLC said. A reading above 50
indicates expansion from the previous month, while a reading below
50 indicates contraction.
Australian miners also trimmed losses, with BHP Billiton Ltd.
down 0.8% after falling 1.7% earlier in the session. Rio Tinto Ltd.
was about flat, reversing from a 1.2% loss earlier in the day and
Fortescue Metals Group Ltd. gained 2.0%. The Australian dollar,
also known as the Aussie, traded near a seven-month low at
US$0.89.
However, the Hang Seng Index slipped 0.2%, while the Shanghai
Composite Index was up 0.2%, in a mixed reaction to the closely
watched gauge of nationwide manufacturing.
Mizuho economist Shen Jianguang said there were few signs of
improvement in September's economic activity, despite the increase
in HSBC's flash PMI. "Investment is still slowing and home sales
continue to drop," he said, adding that weak commodity prices still
pointed to sluggish demand.
On the mainland, stocks were helped by gains in property
developers amid investor hopes that major banks might ease mortgage
policies. Poly Real Estate Group was up 1.5% and China Vanke Co.
gained 1.8%.
Weakness in some Asian markets also reflected a slide in U.S.
stocks overnight, as investors there also stepped back amid
uncertainty over China's economic growth. China's finance minister
said earlier this week that major changes to the country's economic
stimulus efforts aren't likely, tempering previous expectations for
the government to step up measures.
Markets in Tokyo were closed for the Autumn Equinox, a national
holiday in Japan.
-- Gregor Stuart Hunter contributed to this article.
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