Hong Kong, India Lead Asian Markets Advance

Nigel Thomas
03 Jan, 2012
New York City

Asian markets traded higher after China reported better than expected manufacturing data. Market indexes gains were in a check after crude oil increased 3%. Markets in Japan, mainland China, Japan and Thailand were closed.

[R]7:00 PM Tokyo – Asian markets traded higher after China reported better than expected manufacturing data. Market indexes gains were in a check after crude oil increased 3%. Markets in Japan, mainland China, Japan and Thailand were closed.[/R]

Markets in Asia traded higher on the optimistic domestic economic outlook and China reported improving manufacturing. However, the gains in the indexes were restrained after crude oil surged as the tensions in the Middle East rose.

China''s Purchasing Managers Index, a gauge of the country''s manufacturing activity, rose more than estimated to 50.3 in December from 49 in November, the China Federation of Logistics and Purchasing said late Saturday.

Earlier in the week, India also reported rising manufacturing production.

Oil jumped more than 3% in regional trading after tensions in the Middle East rose and Iran said it is prepared to block Strait of Hormuz if the U.S. prevents the oil exports.

State controlled news agency IRNA quoted chief of army Ataollah Salehi as saying Iran would take military action if a U.S. naval vessel returned to the Gulf. The news was first reported by Reuters.

U.S. has imposed sanctions on Iran and is looking to block the exports of Iranian oil as Iran ramps up its nuclear warhead production races to build a nuclear bomb.

The benchmark indexes in the region gained but markets in mainland China, Japan and Thailand were closed for a public holiday.

The benchmark index in Australia increased 1.1% to 4,101.20, in Seoul added 2.7% to 1,875.41 and in Hong Kong surged 2.4% to 18,877.41. The Sensex index in India soared 2.7% to 15,939.36.

In regional trading gold traded at $1,590.20 per ounce and the Brent crude oil futures increased $2.97 a barrel to $110.35. Crude oil gained on the back of the worries of the crude oil supplies from the Middle East and better than expected manufacturing reading in China.

Singapore’s gross domestic product declined for the second time in three quarters and in the fourth quarter declined to annual fall of 4.9^ from the third quarter.

In currency trading, Australian dollar gained 0.7% to $1.03 and New Zealand dollar increased 0.9% to 78.53 U.S. cents. South Korea’s won gained 0.4% to 1,150.82 and rupee in Mumbai traded at 53.21 against one dollar.