Most of the Asian equity benchmarks are trading up in the early deals on Tuesday, despite the weak cues overnight from Wall Street and official data showing that China's manufacturing activity contracted in November to a three-year low. Investors went bargain hunting as they looked ahead to crucial data due later in the week. The China's official Purchasing Managers' Index (PMI) stood at a three-year low of 49.6 in November, compared with the previous month's reading of 49.8 and below both forecasts for a reading of 49.8 as well as the 50-point mark that separates growth from contraction. But the private Caixin/Markit China Manufacturing PMI showed factory activity contracted at a slower pace than in October, fuelling hopes the economy may be slowly leveling out in response to a series of government support measures. Meanwhile, the Japan's Nikkei share average rose as a weaker yen provided a boost to export-oriented stocks and rising US futures underpinned sentiment, shrugging off soft Chinese factory surveys. Among the other Asian markets, South Korea, Hong Kong, Indonesia, Singapore, Malaysia, and Taiwan are up with modest gains. Bucking the trend, Shanghai is edging down slightly.
Nikkei 225 gained 187.31 points or 0.95% to 19,934.78, Hang Seng surged 362.60 points or 1.65% to 22,359.02, FTSE Bursa Malaysia KLCI increased 5.39 points or 0.32% to 1,677.55, KOSPI Index added 32.33 points or 1.62% to 2,024.30, Jakarta Composite spurt 77.43 points or 1.74% to 4,523.89, Taiwan Weighted strengthen 119.95 points or 1.44% to 8,440.56, and Straits Times was up by 22.07 points or 0.77% to 2,878.01.
On the flip side, Shanghai Composite was down by 15.35 points or 0.45% to 3,430.06.