Asia-Pacific stocks mostly rise; private survey shows Chinese factory activity expanding in May

Shares in major Asia-Pacific markets were mostly higher on Tuesday, as investors reacted to the release of a private survey on Chinese manufacturing activity in May. Mainland Chinese stocks closed higher, with the Shanghai composite up 0.26% to 3,624.71 and the Shenzhen component rising 0.256% to 15,034.78. Hong Kong’s Hang Seng index rose about 0.9%, as of its final hour of trading.

The Caixin/Markit manufacturing Purchasing Managers’ Index (PMI) for May came in at 52, higher than expectations for a reading of 51.9 by analysts in a Reuters poll. The figure for May also compared against April’s reading of 51.9. The official manufacturing PMI for May, released Monday, came in 51.0 — slightly lower than analyst expectations for a reading of 51.1 in a Reuters poll.

PMI readings above 50 represent expansion while those below that level signify contraction. PMI readings are sequential and represent month-on-month expansion or contraction. Japan’s Nikkei 225 slipped 0.16% to close at 28,814.34 while the Topix index edged 0.17% higher to finish the trading day at 1,926.18. South Korea’s Kospi closed 0.56% higher at 3,221.87.

Over in Southeast Asia, the FTSE Bursa Malaysia KLCI Index hovered above the flatline, as of 3:22 p.m. local time. Malaysia’s prime minister on Monday announced an additional 40 billion ringgit (about $9.7 billion) stimulus package, just hours before stricter lockdown measures to curb the Covid spread in the country were set to kick in.

Asia-Pacific stocks mostly rise; private survey shows Chinese factory activity expanding in May, CNBC, Jun 1