SINGAPORE – Asia Pacific stocks largely rose in Monday morning trading as investors waited for a private survey to be released on Chinese manufacturing activity in July. Meanwhile, oil prices fell by over 1%.
In Japan, the Nikkei 225 rose 1.71% in morning trading while the Topix index gained 1.82%.
The S & P / ASX 200 in Australia also posted robust gains, up 1.47%. South Korea’s Kospi gained 0.34%.
Hong Kong’s Hang Seng index remained flat, while mainland China stocks lagged, with the Shanghai Composite down 0.73% and the Shenzhen Component down 0.286%.
MSCI’s broadest index for Asia Pacific stocks outside of Japan traded 0.26% higher.
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Looking ahead, the Caixin / Markit purchasing managers’ index for July will be published on Monday at 9:45 a.m. HK / SIN.
China’s official purchasing managers’ index for manufacturing, released over the weekend, showed that factory activity growth slowed in July, with the month reading at 50.4, up from 50.9 in June.
PMI values above 50 indicate expansion, while those below this value indicate contraction. The PMI readings are sequential and represent a monthly expansion or contraction.
The Covid situation in the region could also weigh on investor sentiment. According to local news agency Kyodo News, more areas in Japan entered the Covid-19 state of emergency on Monday due to a surge in virus cases.
Meanwhile, Chinese state media reported that governments at various levels across the country have taken measures to contain the virus after a resurgence of infections that reportedly started in Nanjing city.
Oil drops 1%
Oil prices were lower on the morning of Asian trading hours, with international benchmark Brent crude futures falling 1.19% to $ 74.51 a barrel. US crude oil futures declined 1.04% to $ 73.18 a barrel.
The US dollar index, which tracks the greenback versus a basket of its competitors, hit 92.095 after falling from a level above 92.4 recently.
The Japanese yen was trading at 109.67 per dollar, stronger than levels above 110 versus last week’s greenback. The Australian dollar changed hands at $ 0.7343 after falling from levels above $ 0.738 late last week.
