SINGAPORE – Asia Pacific stocks traded higher on Monday, as data released showed that China’s manufacturing activity growth slowed in February.
In Japan, the Nikkei 225 rose 2.36% in morning trading, while the index tried to recover from its nearly 4% drop on Friday. The Topix index gained 1.7%.
Mainland China shares rose, with the Shanghai component gaining 0.89%, while the Shenzhen component rose 2.03%. The Hong Kong Hang Seng index advanced 1.44%.
Australian stocks rose with the S & P / ASX 200 gaining 1.44%.
The broader MSCI index for Asia Pacific stocks outside Japan was traded 0.98% above.
South Korea’s markets are closed on Monday for a holiday.
Manufacturing PMI in China
China’s official manufacturing purchasing managers’ index (PMI) for February stood at 50.6 over the weekend, according to data released by the country’s National Bureau of Statistics.
This was lower than the January reading of 51.3, but still above the 50 level that separates expansion from contraction.
A private survey released on Monday also showed that China’s manufacturing activity in February grew at a slower pace.
The Caixin / Markit manufacturing Purchasing Managers’ Index (PMI) stood at 50.9, down from the January reading of 51.5.
Levels above 50 in PMI readings represent expansion, while those below mean contraction. PMI readings are sequential and show expansion or contraction in the month.
Bond yields fall
The movements in the Asia-Pacific markets occurred with the decline in bond yields.
The yield on the 10-year reference Treasury note fell to a minimum of 1.383%, being traded for the last time at 1.4169%. Prices move inversely to income.
In Asia Pacific, the 10-year Australian bond yield fell to 1.652%, having seen levels above 1.8% last week. Yield on 10-year Japanese government bonds also fell to 0.155%.
Oil prices soar
Oil prices rose on the morning of trading in Asia, with Brent’s international benchmark oil futures rising 1.92% to $ 65.66 a barrel. US oil futures gained 1.9% to $ 62.67 a barrel.
The US dollar index, which tracks the US dollar against a basket of its peers, was at 90.812, after recovering from levels below 90 at the end of February.
The Japanese yen was trading at 106.60 per dollar, weaker than levels below 105.6 against the dollar seen last week. The Australian dollar changed hands at $ 0.7752, having dropped from levels above $ 0.792 last week.
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