RTTNews - The Asian markets ended in the positive territory on Tuesday following robust PMI data from China for August, a day after a sell-off in Shanghai on concerns about over-heating in the economy. Positive closing in Shanghai also lifted market sentiment despite weak closing in the U.S. in the previous session. The market in India, however, ended in negative territory following weak European markets.
In Japan, the benchmark Nikkei 225 Index ended at 10,530, representing a gain of 37.53 points, or 0.36%, while the broader Topix index of all first section stocks gained 3.04 points, or 0.31%, to close at 969.
Chip-makers advanced on prospects of higher demand and increased earnings. Toshiba Corp., the biggest maker of semiconductors in the country, gained 2.72%, Sumco Corp. advanced surged up 10%, and NEC Corp added 1.49%.
Precision equipment makers also ended in positive territory. Nikon Corp. gained 4.25%, Olympus Corp. added 1.58%, Ricoh Co advanced 1.79% and Konica Minolta rose 1.70%.
Automotive stocks ended in positive territory after Japan Automobile Dealers Association revealed that domestic car sales increased 2.3% during August. The strengthening of the U.S dollar also lifted the sentiment as a weaker local currency increases the realization of export proceeds.
Honda Motor gained 1.19%, Toyota Motor Co added 0.75%, Suzuki Motor rose 1.35% and Mitsubishi Motor climbed 0.59%.
Marine stocks declined following drop in Baltic Dry Index. Among the shipping stocks, Kawasaki Kisen lost 1.47%, and Mitsui OSK Lines declined 2.02%. However, Nippon Yusen remained unchanged at previous close.
In Australia, the benchmark S&P/ASX200 Index gained 0.70% or 35.50 points to close at 4,515, while the All-Ordinaries Index ended at 4,511, representing a gain of 27.20 points, or 0.61%.
On the economic front, the Reserve Bank of Australia decided to keep the interest rates unchanged at 3% in an effort to spur the economy and gauge the pace of recovery in the economy. Analysts are of the view that the central bank might wait and watch the response from the economy before deciding to hike interest rates before Christmas.
A report released by the Australian Industry Group and PriceWaterhouse Coopers revealed that manufacturing activity in the country expanded for the first time in 15 months in August, reflecting sharp increases in production, new orders and deliveries. According to the report, the seasonally adjusted Performance of Manufacturing Index climbed 7.2 points to 51.7 in August, rising above the 50 point level separating expansion from contraction.
In a separate report, the Australian Bureau of Statistics revealed that the country posted a seasonally adjusted current account deficit of A$13.34 billion in the second quarter compared to an upwardly revised deficit of A$6.35 billion in the first quarter.
The Statistics Bureau further stated that building approvals continued to fall, although at a slower pace in July. Residential building approvals were down 3.9% on a yearly basis in July, better than a 9.1% fall anticipated by economists and the 14.3% drop seen in June.
Light sweet crude oil price for October delivery ended at $70.38 a barrel in electronic trading, up $0.42 from its previous close $69.96 a barrel in New York on Monday.
Banks ended in positive territory on prospects of growth in the economy. ANZ Bank advanced 3.33%, Commonwealth Bank of Australia added 0.67%, National Australia Bank rose 2.49% and Westpac Banking gained 1.97%.
Metals and mining stocks also ended higher after UBS revised the forecast for the commodities sector. BHP Billiton gained 1.33%, Iluka Resources advanced 2.53%, Oz Minerals added 0.47% and Rio Tinto rose 2.33%.
Mixed trading was witnessed among the oil stocks following a sharp drop in crude oil prices in the international market on Monday. While Woodside Petroleum slipped 0.92% and Santos edged down 0.13%, Oil Search advanced 0.96% and Origin Energy gained 1.18%.
Qantas, the largest airline in the country, reported a rise in passenger traffic for the month of July compared to the same period last year, helped by huge discounts. The stock declined 1.19%.
Gold stocks ended in negative territory. Lihir Gold edged down 0.37%, Newcrest mining lost 0.87% and Sino Gold Mining slumped 4.87%.
In Hong Kong, the Hang Seng Index ended in positive territory with a gain148.11 points, or 0.75% at 19,872, after a statement in Beijing revealed that the official Purchasing Managers' Index rose to a seasonally adjusted 54 from 53.3 in July. Positive trading in Shanghai, which saw a 6.7% slump in the previous session, also attracted buying interest in select property stocks, china-related stocks, resource stocks and banks.
In South Korea, the benchmark KOSPI Index ended at 1,623, up 31.21 points, or 1.96% as institutional investors evinced buying interest on increasing confidence about turnaround in the global economy. Positive economic data in China related to manufacturing as well as trading across other markets lifted market sentiment.
As European stocks reversed their early gains and U.S. stocks futures dropped, the Indian market, which rose sharply in early trading on firmer Asian cues, slipped deep into the red before recovering some lost ground in late trading. The BSE Sensex ended at 15,551, down 115 points or 0.74% from the previous close, and S&P CNX Nifty fell 37 points or 0.79% to 4,625.
Among the other major markets in the region, China's Shanghai Composite Index gained 0.60% or 15.98 points, to 2,684, Taiwan's Weighted Index surged up 193.80 points, or 2.84% to close at 7,020, and Singapore's Strait Times Index added 3.49 points, or 0.13%, to close at 2.596. However, Indonesia's Jakarta Composite Index bucked the trend and ended in the negative territory with a loss of 14.62 points, or 0.62% at 2,327.
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