Manufacturing Index Lifts HK, Shanghai Stocks

123jump.com Staff
04 May, 2009
New York City

China region stocks surged after investors piled in stocks on better than expected manufacturing industry data. The weekend agreement among Asian nations to set up a reserve fund also bolstered stocks in the region. Commodities linked stocks rallied in Hong Kong and in Shanghai.

[R]10:00PM Shanghai, 10:00AM New York – China region stocks surged after investors piled in stocks on better than expected manufacturing industry data. The weekend agreement among Asian nations to set up a reserve fund also bolstered stocks in the region.[/R]

Stocks in Hong Kong and Shanghai surged after the release of manufacturing index data. The private sector measure of manufacturing industry from CLSA showed its first monthly gain. The April gain was also registered in the monthly manufacturing index reported by China on Friday, its second monthly gain in a row.

The economic data lifted indexes in the region and commodities prices.

Over the weekend the ASEAN group of nations and Japan agreed to set up $120 billion of reserve to fund to provide emergency loans to the companies in the region. The agreement in Bali, Indonesia lifted confidence in Asian financial markets.

The Hang Seng index in Hong Kong increased 860.06 or 5.54% closed to 16,381.05, CSI 300 index in China higher 91.38 or 3.48% closed to 2,714.30. ASX 200 index in Australia increased 113.40 or 3.01% closed to 3,883.00.

Miners and steelmakers led the rally in the region. Zhuzhou Smelter added 5.3%, Jiangxi Copper Co. surged 5% and Baoshan Iron & Steel Company gained 4.5%. China Mobile gained 7.5% on broker recommendation.

China Petroleum & Chemical Corp added 3.6% and PetroChina added 3.2%.

Shanghai Pudong Development Bank added 2.8% to 23.80 yuan after it estimated net income to increase 10% from a year ago to 12.7 billion yen.

Australian Miners Rise

In Australian trading, BHP Billiton gained 2.3%, Rio Tinto Group surged 4.9% and Woodside Petroleum Ltd increased 5.4%.

ASX Ltd. surged 6.2% on the media reports that the company is looking to relax listing rules to facilitate capital raising for small companies.

Asian Markets Review

The Hang Seng index in Hong Kong increased 860.06 or 5.54% closed to 16,381.05, CSI 300 index in China higher 91.38 or 3.48% closed to 2,714.30. ASX 200 index in Australia increased 113.40 or 3.01% closed to 3,883.00. The KL Composite index in Malaysia higher 18.62 or 1.88% closed to 1,009.36.The Markets of Tokyo were closed today.

The Kospi Index in South Korea increased 28.56 or 2.09% to close at 1,397.92. SET index in Thailand closed higher 14.57 or 2.96% to 506.26 and JSE Index in Indonesia increased 58.56 or 3.39% closed to 1,788.15. The Sensex index in India increased 731.50 or 6.41% closed to 12,134.75.