Hong Kong - Asian stocks were broadly higher on Wednesday as investors welcomed strong US manufacturing data while Hong Kong tacked on more than two percent following a positive reading on China's services sector.
The dollar held above the ¥105 mark after breaking it on Tuesday for the first time since January, sparking a rally in Japanese exporters.
Tokyo rose 59.75 points to 15 728.35 while Hong Kong jumped 568.93 points to 25 317.95 and Shanghai rose 22.58 points to 2 288.63.
Seoul ended flat, dipping 0.38 points to 2 051.20 and Sydney was also a touch lower, easing 2.4 points to 5 656.10.
Data showed Australian economic growth slowed in the three months to June owing to a sharp fall in exports.
Traders cheered a report from the Institute for Supply Management, which said on Tuesday that a gauge of activity in the US manufacturing sector picked up pace in August, hitting its best level since August 2011.
"The parade of solid data continues," a Societe Generale analyst told Dow Jones Newswires. The figures are the latest suggesting the US economy is well on track to recovery and will add to pressure on the Federal Reserve to raise interest rates earlier than its timetable of next year.
The strong data "should keep upward pressure on the dollar, which will, in turn, make Japan stocks attractive", said SMBC Nikko Securities general manager of equities Hiroichi Nishi.
But US traders, returning to work Tuesday after the Labour Day weekend, were unimpressed. The Dow fell 0.19% and the S&P 500 slipped 0.07% although the Nasdaq added 0.39%.
Currency dealers shifted into the dollar, helping it breach ¥105.
In afternoon Tokyo trade the dollar bought ¥105.06 compared with ¥105.10 in New York on Tuesday afternoon.
The euro bought $1.3135 and ¥137.88 against $1.3132 and ¥138.02 in US trade.
Buying was also supported by a jump in indexes measuring China's service sector.
HSBC said its services purchasing managers' index (PMI) hit a seven-month high of 54.1 last month, while the official PMI climbed for the first time in three months, to 54.4. A figure above 50 indicates growth and anything below points to contraction.
The results helped temper disappointment at Monday's manufacturing PMIs, which added to concerns about the world's number two economy.
Focus is now on central bank meetings in Japan and Europe, with a recent batch of soft economic data fanning calls for policymakers at both institutions to ease monetary policy to kickstart growth.
Friday also sees the release of a closely watched US jobs report that could add to growing pressure on the Federal Reserve to increase interest rates.
Oil prices rebounded on bargain-hunting after plunging to multi-month lows in New York trade. US benchmark West Texas Intermediate (WTI) for October delivery rose 38 cents to $93.26 while Brent crude for October gained 42c to $100.76 in afternoon trade.
WTI fell $3.08 to $92.88 in New York trade, its lowest level since January, while Brent sank $2.45 in London to $100.34. It had fallen to as low as $100.17, its lowest level since May 2013.
Gold traded at $1 270.61 an ounce at 13:20, from $1 271.33 late on Monday.
In other markets:
- Mumbai closed up 120.55 points at 27 139.94 points.
Oberoi Realty jumped 15.24% to 272.60 rupees, while Jaiprakash Associates lost 3.07% to 45.75 rupees.
- Bangkok added 14.67 points to 1 583.27.
Coal producer Banpu rose 4.55% to 34.50 while Bangkok Bank closed 1.42% higher, or 3.00 baht, at 215.00.
- Kuala Lumpur's main index lost 2.82 points to 1,864.87
Telekom Malaysia shed 0.47% to 6.35 ringgit, Tenaga Nasional dipped 0.16% to 12.40 while Malayan Banking was flat at 10.14 ringgit
- Jakarta ended up 0.43% at 5 224.135.
Hero Supermarket gained 0.20% to 2 530 rupiah, while state miner Aneka Tambang fell 0.43% to 1 155 rupiah.
- Singapore rose 20.47 points to 3 348.77.
Oil rig maker Keppel gained 0.64% to Sg$10.98 while DBS Bank rose 0.73% to Sg$18.06.
- Taipei rose 50.63 points, to 9 450.35.
Taiwan Semiconductor Manufacturing was up 1.59% at Tw$128.0 while Hon Hai Precision Industry added 0.50% to Tw$101.0.
- Wellington ended flat, edging up 2.62 points to 5 224.40.
Contact Energy was up 0.37% at NZ$5.45 and Spark, formerly known as Telecom, eased 0.99% to NZ$2.99.
- Manila rose 99.46 points to 7 206.02.