Yahoo Finance Asian Stocks Advance Despite Weaker-than-expected Manufacturing Data from China
Investing.com - Asian equities were mostly higher in afternoon trade on Wednesday as markets brushed off disappointing economic data from China.
The official Purchasing Managers’ Index (PMI) fell to 50.2 in October from 50.8 in September, official data showed on Wednesday. Markets previously expected the reading to ease slightly to 50.6.
The non-manufacturing PMI also slipped to 53.9, missing forecasts for 54.6 and down from 54.9 in September.
On September 24, the U.S. and China slapped additional tariffs on each other's goods. Earlier this week, U.S. President Donald Trump threatened to hit China with more duties by December.
Private surveys by Caixin and IHS Markit focusing on small and mid-sized firms will be released on Thursday.
Despite the disappointing data, the Shanghai Composite and the Shenzhen Component traded 1.1% and 1.3% higher by 1:12 AM ET (05:12 GMT). Hong Kong’s Hang Seng Index was up 0.9%.
Japan’s Nikkei 225 gained 2.0% even after the trade ministry revealed the country’s industrial output fell more than expected in September.
The Bank of Japan maintained a steady monetary policy on Wednesday, but cut its inflation forecasts slightly and warned on financial vulnerabilities.
"Prolonged downward pressure on financial institutions' profits from low interest rates... could destabilise the financial system," the central bank said in a quarterly report.
"Although these risks are judged as not significant at this point, it's necessary to pay close attention to future developments," it said.
Elsewhere, South Korea’s KOSPI rose 0.4%. Index heavyweight Samsung (KS:005930) said operating profit rose 21% from a year ago to 17.6 trillion won, in line with expectation.
Down under, Australia’s ASX 200 also gained 0.4%.
The Australian Bureau of Statistics said on Wednesday that consumer prices in Australia were up 0.4% on quarter in the third quarter of 2018.
The Australian dollar declined 0.3% against the dollar after the weaker-than-expected inflation reading.
Crude Oil WTI Futures picked up on Wednesday morning in Asia, despite the U.S., Russia and Saudi Arabia’s vow to raise crude output just days before sanctions against Iran take effect.
Gold futures for December delivery were down 0.5% to 1,218.70.
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