Stocks in Asia Pacific rose in Tuesday morning trade as investors await the release of China’s official manufacturing Purchasing Manager’s Index.
The Nikkei 225 in Japan rose 1.75% in early trade, following its more than 2% slide on Monday. The Topix index also added 1.5%. In South Korea, the Kospi gained 1.39%.
Meanwhile, the S&P/ASX 200 in Australia added 0.66%.
Overall, the MSCI Asia ex-Japan index traded 0.33% higher.
Investors await the release of China’s official manufacturing PMI for June, set to be released around 9:00 a.m. HK/SIN on Tuesday. Economists in a Reuters poll have a median forecast of 50.4 for the data print, above the 50 level that indicates expansion in activity.
Meanwhile, Japan’s industrial production in May dropped 8.4% month-on-month, according to data released Tuesday in a preliminary report by the country’s Ministry of Economy, Trade and Industry. That was a larger decline than a median market forecast of a 5.6% fall by economists in a Reuters poll.
Developments surrounding the coronavirus pandemic will also continue to be watched, with World Health Organization chief Tedros Adhanom Ghebreyesu warning Monday that “the worst is yet to come.”
“Although many countries have made some progress, globally, the pandemic is actually speeding up,” he said during a virtual news conference from the agency’s Geneva headquarters. “We all want this to be over. We all want to get on with our lives, but the hard reality is that this is not even close to being over.”
Overnight stateside, stocks on Wall Street jumped. The Dow Jones Industrial Average closed 580.25 points higher, or 2.3%, at 25,595.80. The S&P 500 surged 1.5% to finish its trading day at 3,053.24 while the Nasdaq Composite gained 1.2% to close at 9,874.15.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 97.4 after earlier trading at levels above 97.5.
The Japanese yen traded at 107.58 per dollar after weakening sharply from levels below 107.5 yesterday. The Australian dollar changed hands at $0.6869 after dipping to levels around $0.685 yesterday.
Author: William Feuer and Jasmine Kim