Asian markets rise, brushing off disappointing economic data from China

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Asian stock markets gained in early trading Wednesday as trade tensions eased and despite weaker-than-expected manufacturing data from China.

Japan’s Nikkei














NIK, +1.38%












  was up 1.5% following some robust earnings reports after Tuesday’s closing bell. Overnight gains in U.S. equities also helped the risk-on mood. Investors in Japanese equities are embracing risk amid the ongoing earnings season, with Mazda














7261, +1.67%












  up 2% ahead of its earnings report later today. Sony














6758, +3.28%












  was up 3.7% after it reported that its net profit beat forecasts by ¥173 billion after the closing bell yesterday. Honda’s














7267, +5.72%












  second-quarter profit also rose sharply, helping boost its shares today by 5.7%. Meanwhile, yields were higher across the board in long-term debt ahead of the Bank of Japan’s monetary policy announcement, where it is widely expected to stand pat. The benchmark 10-year JGB yield is up half a basis point at 0.120%. The U.S. dollar retreated against a basket of major currencies during Asian trading, adding to regional weakness concerns.

Chinese equity benchmarks were higher, amid lack of negative surprises from the latest economic data. The official manufacturing PMI was 50.2 in October compared to consensus 50.6 and 50.8 in the prior month, marking the lowest reading since July 2016. Non-manufacturing PMI showed similar weakness, at 53.1 versus 54.1 in September, its lowest in 14 months. Despite that, Chinese stocks rose, with the Shanghai Composite














SHCOMP, +1.13%












  up about 1% and the smaller-cap Shenzhen Composite














399106, +1.20%












 up 1.3%.

Hong Kong’s Hang Seng Index














HSI, +0.65%












  also rose about 1%, with Sunny Optical














2382, +7.16%












  and AAC














2018, +4.57%












  rising 7% and 5% respectively. Chinese energy stocks were doing well, too, with China Shenhua














1088, +3.84%












  and PetroChina














0857, +3.24%












  adding 3.6% and 2.3% respectively. Among other major stocks, Tencent














0700, +2.85%












 rebounded 2.4%, AIA














1299, +0.26%












  added 1% and Xiaomi














1810, +3.60%












  rose 4%.

New Zealand’s S&P/NZX 50














NZ50GR, +1.17%












  was 0.9% higher while Korea’s Kospi














SEU, -0.03%












  rose a meager 0.2% as Samsung














005930, -1.06%












  slipped after posting record quarterly profit but disappointing phone sales. Australia’s benchmark S&P/ASX 200














XJO, -0.20%












  was essentially flat. Benchmarks in Taiwan














Y9999, +1.84%












  and Singapore














STI, +0.59%












  posted strong gains.

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Source : MTV