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Asian shares rise on China economic data

Jan 03 2012 08:04 AFP

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Hong Kong - Asian shares rose on Tuesday, taking a lead from European markets which started 2012 in positive territory, and after China announced better-than-expected manufacturing data.

Australia's S&P/ASX 200 was up 1.16%, Hong Kong rose 1.80% in morning trade while Seoul was 2.50% higher.

Financial markets in China, Japan and Thailand were closed for a public holiday.

"We are starting the new year on a positive note and data such as better-than-expected PMI (purchasing managers index) out of China over the weekend will help to give investors new confidence," said Jason Hughes, Head of Premium Client Management at IG Markets.

"However, the major issues of 2011 still have to be resolved with meaningful solutions required from Europe - until this is finally put to bed we are likely to have an amount of uncertainty remaining around global markets."

China's manufacturing unexpectedly rebounded in December on holiday shopping, as the world's number two economy showed some resilience despite strife in key export markets.

The purchasing managers index (PMI) reached 50.3 in December, the China Federation of Logistics and Purchasing said in a statement Sunday.

A reading above 50 indicates the sector is expanding.

Meanwhile, European shares closed higher on Monday after figures showed private consumption in Germany was at its strongest level for more than a decade in 2011, despite the ongoing eurozone crisis.

Separately, official data showed the number of people in work hit a record 41.04 million, with more than half a million jobs created last year.

Positive US economic data last week, including rising home sales, also helped buoy markets as investors look for signs of resurgence in the world's biggest economy.

However, the eurozone's still-unresolved fiscal woes continue to weigh on investor sentiment with observers saying the debt crisis would loom over markets into 2012.

Spain, one of several eurozone economies struggling to keep its massive debt under control, last week announced €8.9bn in budget cuts and higher taxes to bring in another €6.3bn as it moves to curb a bigger-than-expected public deficit.

The euro strengthened against the Japanese currency on Tuesday, with the unit changing hands at ¥99.79 in early Asian trade against ¥99.62 on Friday, as it fell below the ¥100 mark for the first time in 10 years.

The euro bought $1.2985 against $1.2939, while the dollar bought ¥76.85, against ¥76.98.

On oil markets, New York's main contract light sweet crude for February delivery gained $1.51 to $100.34 and Brent North Sea crude for February delivery put on $1.12 to $108.50.

Gold stood at $1 577.67 an ounce at 03:00 GMT, against $1 579.00.


china  |  markets
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