By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Hong Kong stocks jumped to lead most
Asian equity markets higher Monday after manufacturing data on
China signaled an improvement in the world's second-largest
economy.
The benchmark Hang Seng Index ended 2% higher to clinch a third
straight trading day of gains, Japan's Nikkei Stock Average rose
1.4% and Australia's S&P/ASX 200 added 1%.
China's Shanghai Composite itself ended flat after moving in
both directions, while South Korea's Kospi dropped 0.1% at the end
of a choppy session.
The broad advances came after official Chinese data released
over the weekend showed the manufacturing Purchasing Managers'
Index for August rose to 51.0 from 50.3 in July. The final reading
of a separately conducted survey by HSBC and Markit, released
Monday, also put the August PMI reading at 50.1 -- above the
50-point level that signals an expansion -- rebounding strongly
from an 11-month low of 47.7 in July.
"The rise in the official manufacturing PMI for August suggests
that cyclical improvement in industry continued in August. It
likely reflects a consolidation of the improvement in export
momentum and the first impact of some measures taken recently to
support growth," said Louis Kuijs, a China economist at the Royal
Bank of Scotland.
HSBC China chief economist Hongbin Qu also offered similar
views, adding that while recent stimulus measures and restocking
activities at companies led to the improvement in August, the bank
expected "some upside surprises to China's growth in the coming
months."
The gains in Asia follow a drop on Wall Street Friday, and amid
lingering worries the U.S. may lead a military intervention in
Syria, even as President Barack Obama is seeking congressional
support for such a move. U.S. stock markets will be closed Monday
for Labor Day holiday.
Leading stock gains in Hong Kong, China Shenhua Energy Co.
(CSUAY) jumped 5%, Sands China Ltd. (SCHYY) climbed 4.3% and
heavyweight China Construction Bank Corp. (CICHY) advanced
2.5%.
China Railway Construction Corp. (601186.SH) jumped 3.4% and
China Railway Group Ltd. (601390.SH) gained 0.5% after each posted
a more than 45% jump in first-half profits.
The Shanghai-listed shares of China Railway Construction and
China Railway Group rose 3% and 0.7%, respectively.
Shares of Aluminum Corp. of China, or Chalco (ACH) , gained 1.9%
in Hong Kong and 0.3% in Shanghai despite a loss at the company in
the first half of 2013.
The advance in Tokyo came as the U.S. dollar (USDJPY) climbed
back above the Yen99-level, providing a lift to several
internationally exposed corporations.
Pharmaceutical major Daiichi Sankyo Co. (4568.TO) added 3.3%,
Japan Tobacco Inc. (JAPAF) gained 1.7% and Isuzu Motors Ltd.
(ISUZY) advanced 2.2%.
Meanwhile, major miners advanced in Sydney after the Chinese PMI
data.
Rio Tinto Ltd. (RIO) rose 1.6% and Fortescue Metals Group Ltd.
(FSUMY) climbed 2.4%, although gold miners underperformed after the
precious metal's prices dropped under the $1,400-an-ounce
level.
Shares of Westpac Banking Corp. (WBK) advanced 1.4% and National
Australia Bank Ltd. (NABZY) gained 1.2% ahead of an expected
decision on Tuesday by Australia's central bank rate to hold the
benchmark interest rate at 2.5%.
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