Japan’s Nikkei 225 surges 2%; investors react to mixed Chinese factory activity data for October

Key Points

• Stocks in Asia-Pacific were higher in Monday morning trade.

• China’s official manufacturing Purchasing Managers’ Index for October came in at 49.2 over the weekend, below the 50 level separating expansion from contraction.
• Meanwhile, a private survey showed Chinese manufacturing activity growth in October, with the Caixin/Markit manufacturing PMI coming in at 50.6.

SINGAPORE — Shares in Asia-Pacific were mixed in Monday trade as investors reacted to economic data that showed a mixed picture of Chinese manufacturing activity in October.

Japanese stocks led gains regionally as the Nikkei 225 jumped 2.17% in morning trade, with shares of Fast Retailing soaring nearly 5%. The Topix index climbed 1.46%. Those gains came after the country’s ruling Liberal Democratic Party held on to its single-party majority in a Sunday parliamentary election.

Hong Kong’s Hang Seng index fell 1.15% while mainland Chinese stocks were also lower, with the Shanghai composite down 0.39% and the Shenzhen component dropping 0.353%.

China’s official manufacturing Purchasing Managers’ Index for October came in at 49.2 over the weekend, below the 50 level separating expansion from contraction. It represented the second straight month of shrinking manufacturing activity in the country, following September’s official manufacturing PMI reading of 49.6.

However, a private survey released Monday showed Chinese manufacturing activity growth in October expanding — with the Caixin/Markit manufacturing PMI coming in at 50.6.

PMI reading below 50 represent contraction while those above that level signify expansion. PMI readings are sequential and represent month-on-month expansion or contraction.

Stock picks and investing trends from CNBC Pro:

Let it ride or lock in? What to do in the final months of 2021 with the S&P 500 up 22%

These 15 stocks have been on Goldman’s buy-rated conviction list for years

These stocks reporting in the week ahead almost always beat the street and trade higher

Elsewhere, South Korea’s kospi advanced 0.37% while the S&P/ASX 200 in Australia gained 0.6%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.37% lower.

Currencies and oil

The US dollar index, which tracks the greenback against a basket of its peers, was at 94.181 after a recent jump from below 93.6.

The Japanese yen traded at 114.07 per dollar, weaker than levels below 113.4 seen against the greenback last week. The Australian dollar changed hands at $0.7511, following a decline from above $0.753 late last week.

Oil prices slipped in the morning of Asia trading hours, with international benchmark Brent crude futures down 0.22% to $83.54 per barrel. US crude futures shed 0.48% to $83.17 per barrel.

Source : CNBC