· Asia shares supported by upbeat U.S. manufacturing, but virus woes cap gains
Asian shares advanced on Tuesday thanks to strong U.S. manufacturing data and upbeat tech stocks, though broader worries about the coronavirus and global economy saw some markets trim early gains.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.41%, but shares in China .CSI300 edged 0.04% lower on simmering Sino-U.S. tensions. Australian stocks gained 1.88% for the biggest intraday gain since July 21. Tokyo shares .N225 also jumped by more than 1%.
An industry gauge released overnight indicated U.S. manufacturing activity expanded in July at the fastest pace in more than a year, which helped Wall Street shares rise on Monday.
However, some investors remain cautious due to worries about a resurgence of the coronavirus and a diplomatic tussle over Chinese tech companies’ operations in the United States.
· Nikkei ends at one-week high on Wall Street rally, weaker yen
Japanese shares ended higher on Tuesday as investor sentiment was lifted by a tech-led overnight rally on Wall Street, and a softer yen propped up exporters.
The benchmark Nikkei average gained 1.7% to 22,573.66, its highest close since July 28, while the broader Topix jumped 2.14% to 1,555.26.
Overnight, Wall Street rallied as strong U.S. manufacturing data and gains in tech-related stocks boosted risk appetite, with the Nasdaq settling at a record closing high.
Shares of export-oriented automobile makers got a boost from a weaker yen, which edged further away from a 4-1/2-month high hit last week against the dollar.
· China stocks end higher as banks rally
China stocks ended higher on Tuesday, underpinned by strong gains in banks as investors cheered Beijing’s latest move to ease pressure on the country’s financial institutions.
The blue-chip CSI300 index rose 0.1%, to 4,775.80, while the Shanghai Composite Index also inched up 0.1% to 3,371.69.
Banks led the gains, with the CSI300 banks index up 2.6% and bellwether Bank Of Chengdu surging 10%.
China will extend the grace period for implementation of sweeping asset management rules to the end of 2021, the central bank said on Friday.
· European stocks mixed as investors react to data and earnings
European stocks were mixed Tuesday morning as investors react to a slew of corporate earnings, after positive manufacturing data around the world drove stocks higher to start the week.
The pan-European Stoxx 600 hovered around the flatline in early trade, with oil and gas stocks jumping 2.2% to lead gains while food and beverages slid 1.2%.
Investors will continue to monitor U.S. fiscal stimulus talks, with Congressional Democrats and the White House on Monday hinting at progress as lawmakers look to hammer out a new coronavirus relief bill.
Reference: CNBC, Reuters
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