HONG KONG: Asian markets were mixed Tuesday as official data showed a slight pick-up in Chinese manufacturing while a closely watched survey showed Japanese business confidence at a more than six-year high.
Sentiment was also buoyed by comments from the head of the US Federal Reserve underlining its commitment to monetary easing, while tensions in Ukraine eased as Russia partially withdrew troops from its border.
Tokyo fell 0.24 percent, or 35.84 points, to finish at 14,791.99 despite a fall in the yen against the dollar, while Japan ushered in its first sales tax hike since 1997. Sydney dipped 0.10 percent, or 5.6 points, to 5,389.2 and Seoul climbed 0.32 percent, or 6.37 points, to 1,991.98.
Hong Kong rallied 1.34 percent, or 297.48 points, to 22,448.54 and Shanghai added 0.70 percent, or 14.15 points, to 2,047.46.
China said its official purchasing managers index (PMI) of manufacturing activity came in at 50.3 for March, up slightly from February’s eight-month low of 50.2. A figure above 50 points to growth while anything below indicates contraction. Economists had forecast the figure to remain unchanged.
“The PMI index rose slightly in March and ended the trend of falling for three consecutive months . . . it still indicates economic growth will stabilise in the future,” Zhang Liqun, an economist at the state-backed Development Research Center, was quoted as saying in a statement from the National Bureau of Statistics.
However, banking giant HSBC said its own PMI for the country had fallen to 48.0 last month from 48.5 in February, and worse than its initial estimate of 48.1.
A recent run of weak data from China— including on trade, investment and output—has fuelled speculation that policymakers will unveil measures to kickstart growth in the Asian economic giant and driver of global growth.
“The rebound this time reflects the economy remained weak, but it’s slightly better than market expectations,” said Zhou Hao, a Shanghai-based economist with ANZ bank.
“I expect the government to be more active . . . arranging fiscal expenditure in advance for some lagging projects,” he told Agence France-Presse.