Asian markets crept higher on Monday with a regional benchmark index trading near a four-month high after a closely-watched measure of Chinese manufacturing hit its highest in six months and showed a promising pick up in export orders, another sign of stabilization in the world's second biggest economy.
The HSBC report showed increases in output, new orders, export orders and prices, while employment fell at a slower rate. The Flash PMI from HSBC and Markit is based on 85 percent to 90 percent of responses to surveys sent to more than 420 manufacturers.
“China’s growth rebound has continued to gather some momentum, especially in exports,” said Wang Tao, chief China economist at UBS AG in Hong Kong. Today’s reading “adds further support” to UBS’s previous increase in its third-quarter growth forecast to 7.7 percent from 7.5 percent, Wang said.
New export orders jumped to a 10-month peak of 50.8, the first time in six months that exports have grown. Readings on manufacturing across Europe are due later on Monday.
Stocks Rise
Delta Electronics Inc. a maker of power-supply packs for notebook computers surged 6.3 percent, leading technology shares higher. Woori Finance Holdings Co. gained 2.4 percent in Seoul amid speculation sales of its regional bank units will succeed. Newcrest Mining Ltd., Australia’s largest gold producer, dropped 6.4 percent after the price of the precious metal slumped on Sept. 20.
The MSCI Asia Pacific excluding Japan Index climbed 0.2 percent to 470.35 as of 12:41 p.m. in Sydney. The gauge reached a four-month high on Sept. 19 after the Federal Reserve maintained its bond-buying program.
Shares in Shanghai (SSEC) gained 0.6 percent, Taiwan's main index (TWII) was up 0.9 percent and South Korea (KS11) firmed 0.3 percent. Japanese markets were closed for a holiday.