Asian markets are trading broadly higher Monday morning after a private reading of Chinese factory activity came in stronger than expected for November, raising hopes for a developing recovery in the faltering economy.
The Caixin Markit manufacturing activity index came in at 51.8 for November, beating expectations for a 51.4 reading and beating the October reading of 51.7. Official data also showed November manufacturing PMI to be at 50.2, exceeding expectations of a 49.5 reading, and the October mark of 49.3. A reading above 50 indicates a growing economy.
Japan’s Nikkei is outperforming, trading 1% higher in morning trade as the Yen is weakening towards the 110.00 level against the U.S. dollar. The weaker Yen is beneficial for Japanese multinational companies.
In Australia the S&P/ASX 200 has a 0.5% gain, with the big four banks strongly higher, gaining in the range of 0.9% to 1.3%, although NAB is only up 0.2%. The strong Chinese factory data is also helping mining shares, with Rio Tinto adding 0.7%, and Fortescue Metals trading 0.9% higher.
Southeast Asian markets are broadly higher, with Malaysia’s KLCI rising 0.4%, the Jakarta Composite in Indonesia 0.3% higher, and the Straits Times in Singapore edging up 0.1%.