Asian stocks were given a lift by an unexpectedly higher China Caixin PMI with Kospi 1% up

Asian equities

Majority of the stocks in Asia advanced on Tuesday in reaction to the unexpectedly higher Caixin manufacturing PMI data in China which was released on the same day.

According to a Reuters report on Tuesday, China’s Caixin manufacturing PMI figures suggested a rise in the nation’s manufacturing sector for the month of July. The data came in at 51.1 last month, higher compared to last June’s 50.4.

The Caixin PMI also surpassed the estimates of Reuters analysts of 50.4. However, the officially released PMI figures last Monday were lower than expected as it only stood at 51.4 for the month of July versus the forecasted 51.6 via Reuters poll.

Looking on Asian indices, Japanese benchmark Nikkei 225 index rose more than 0.22 percent while the Kospi index in South Korea jumped as high as 1.02 percent due to its manufacturing stocks. Samsung Heavy and Lotte Chemical brought gains to the index as they both added 4.46 percent and 3.25 percent in shares respectively. Meanwhile in the Down Under, the ASX 200 index edged up about 0.77 percent due to its energy sub-index rising more than 1.9 percent.

Mainland markets were also on the positive territory on the day following its initial drop on the private sector manufacturing PMI figures released amidst Asian trading session. The Shenzhen Composite was 0.064 percent higher and the Shanghai Composite surged more than 0.41 percent, but got lost on track for its session highs. The Hang Seng index in Hon Kong edged 0.73 percent higher.

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