In accordance with China, manufacturing facility exercise development slowed in February
SINGAPORE – Asia Pacific stocks traded higher on Monday as data releases showed China’s manufacturing growth slowed in February.
In Japan, the Nikkei 225 rose 2.36% in morning trade as the index tried to recover from its nearly 4% plunge on Friday. The Topix index gained 1.7%.
Mainland China stocks were higher as the Shanghai composite gained 0.89% while the Shenzhen component rose 2.03%. The Hang Seng Index in Hong Kong gained 1.44%.
Australian stocks rose as the S & P / ASX 200 rose 1.44%.
MSCI’s broadest index for stocks in the Asia-Pacific region outside of Japan rose 0.98%.
South Korea’s markets are closed on Monday for public holidays.
PMI for the manufacturing sector in China
China’s official manufacturing purchasing managers’ index (PMI) for February came in at 50.6 over the weekend, according to the country’s National Bureau of Statistics.
That was less than January (51.3) but still above the 50 level that separates expansion and contraction.
A private survey published on Monday also found that China’s manufacturing activity grew more slowly in February.
The purchasing managers’ index (PMI) for the Caixin / Markit manufacturing industry was 50.9, down from January’s 51.5 level.
Values above 50 in PMI readings represent expansion, while values below 50 represent contraction. The PMI values are sequential and show a monthly expansion or contraction.
Bond yields are falling
Movements in Asia Pacific markets came as bond yields fell.
The yield on the 10-year benchmark Treasury note fell to 1.383% and was most recently trading at 1.4169%. Prices move in the opposite direction to returns.
In the Asia-Pacific region, the Australian 10-year bond yield fell to 1.652% after trading above 1.8% last week. The yield on the 10-year Japanese government bond also fell to 0.155%.
Oil prices jump
Oil prices were higher on the morning of trading hours in Asia and the international benchmark Brent crude oil futures rose 1.92% to $ 65.66 a barrel. US crude oil futures rose 1.9% to $ 62.67 a barrel.
The US dollar index, which tracks the greenback versus a basket of its peers, stood at 90.812 after rebounding from below 90 levels in late February.
The Japanese yen was trading at 106.60 per dollar, weaker than below 105.6 against the greenback last week. The Australian dollar changed hands at $ 0.7752 after falling from levels above $ 0.792 last week.
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