Buoyed by strong US factory activity data, Asian equity indices rallied on Wednesday as it raised hopes that the world’s biggest economy remained on a recovery track. Moreover, the sentiment also got some boost after growth in Asian manufacturing improved broader sentiment. The HSBC China Purchasing Managers’ Index (PMI), geared to smaller firms, improved to 49.3 in April from 48.3 in March, showing that the rate of deterioration had slowed following a difficult first quarter.
Meanwhile, China shares climbed 1.76 percent to highest closing level in seven weeks, after the country’s securities regulator said it would reduce transaction fees for trades on the Shanghai and Shenzhen stock exchanges. The China Securities Regulatory Commission said on Monday that it would reduce transactions fees collected by both the stock exchanges and the official clearing house starting June 1. It estimated the combined impact would be 3 billion yuan ($475.42 million) less fees collected in a year, a reduction of 25 percent.
South Korean KOSPI surged about a percentage point after South Korea’s manufacturing activity expanded for a third straight month in April, but at a slower pace than in March, backed by a continued rise in new export orders. The PMI was at a seasonally adjusted 51.9 in April, down from 52.0 in March. However, the Taiwan PMI fell to 51.2 in April from 54.1 in March as manufacturers reduced output prices in line with softening demand conditions, despite registering continued cost inflation. A reading above 50 indicates expansion in manufacturing activity.
Asian Indices | Last Trade | Change in Points | Change in % |
Shanghai Composite | 2,438.44 | 42.12 | 1.76 |
Hang Seng | 21,361.43 | 267.22 | 1.27 |
Jakarta Composite | 4,219.29 | 23.31 | 0.56 |
KLSE Composite | 1,582.39 | 11.78 | 0.75 |
Nikkei 225 | 9,380.25 | 29.30 | 0.31 |
Straits Times | 3,006.14 | 21.57 | 0.93 |
KOSPI Composite | 1,999.07 | 17.08 | 0.86 |
Taiwan Weighted | 7,676.81 | 175.09 | 2.33 |
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