By V. Phani Kumar, MarketWatch
HONG KONG (MarketWatch) -- Asian stocks rose Monday to begin
September on a positive note, with better-than-expected Chinese
manufacturing data and a weakened yen helping the advance.
Japan's Nikkei Stock Average gained 1% and Australia's
S&P/ASX 200 rose 0.8%, while South Korea's Kospi climbed 0.3%,
shaking off the tentativeness witnessed in early trade.
The broad advances came with U.S. stock markets closed Monday
for Labor Day holiday, and 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.
A reading above 50 indicates an expansion in activity. HSBC will
later on Monday separately release the final reading of its own
survey on conditions at Chinese factories last month.
"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.
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.
The advance in Tokyo came as the U.S. dollar (USDJPY) rose to
trade in the mid Yen98-level, providing a lift to several
internationally exposed corporations.
Shares of Mitsubishi Electric Corp. (MIELY) gained 3.1%,
pharmaceutical major Daiichi Sankyo Co. (4568.TO) added 3%, Japan
Tobacco Inc. (JAPAF) gained 1.8% and Isuzu Motors Ltd. (ISUZY)
advanced 1.8%.
Meanwhile, major miners advanced in Sydney after the Chinese PMI
data. BHP Billiton Ltd. (BHP) rose 1% and Fortescue Metals Group
Ltd. (FSUMY) climbed 2.8%, 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 1.5% and
Commonwealth Bank of Australia (CBAUY) gained 0.6% 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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