Most of the Asian equity indices are trading higher in the early deals on Thursday, with investors indulging in some cautious buying, reacting to quarterly corporate earnings reports. Further, a preliminary industry survey showed China's manufacturing sector in solid expansion territory too supported the upside. However, gains are just modest in most of the markets in the region due to lingering concerns about the situation in Ukraine and the Middle East. After opening on a firm note on some strong earnings reports and a slightly weaker yen, the Japanese market pared gains in mid morning trade. On the economic front, Japan posted a merchandise trade deficit of 822.2 billion yen in June- remaining in the red for a record 24th straight month. That missed forecasts for a shortfall of 642.9 billion yen following the 910.8 billion yen deficit in May. Meanwhile, Chinese stocks rose as a jump in the nation’s manufacturing gauge spurred optimism the government will meet its economic-growth target for this year. Among other markets in the Asia-Pacific region, Shanghai, Hong Kong and Indonesia are notably higher. Malaysia and Singapore are up marginally, while South Korea and Taiwan are trading down.
Hang Seng spurted by 93.42 points or 0.39% to 24,065.29, Straits Times gained 5.15 points or 0.15% to 3,345.85, Jakarta Composite increased by 9.10 points or 0.18% to 5,102.33, Shanghai Composite soared 17.36 points or 0.84% to 2,095.85 and FTSE Bursa Malaysia KLCI was up by 0.14 points or 0.01% to 1,871.97.
On the flip side, Nikkei 225 tumbled by 35.28 points or 0.23% to 15,293.28, KOSPI Index declined 3.78 points or 0.19% to 2,024.54 and Taiwan Weighted was marginally in red by 0.42 points or 0.00% to 9,498.94.