Asia's major indices up following upbeat China PMI

Asia’s major indices gained to begin the week’s trade, following growth in China’s manufacturing activity for the month of November.

Asia’s major indices gained on early trade this Monday 02 December, on the back of increased manufacturing activity in China, according to official government data.

China’s National Bureau of Statistics revealed that the Purchasing Managers’ Index (PMI) hit 50.2 for the month of November, up from 49.3 in October.

Factory output is back to growth figures for the first time since March, thanks to higher domestic demand on the back of government stimulus packages. The November PMI also beats Reuters’ earlier estimate of 49.5.

As at 10am, the Shanghai Stock Exchange Composite Index (SSE) rallied 0.49% past the day's opening mark to 2,888.57, while the Hong Kong Hang Seng Index shot up 127.81 points, or 0.49% from Friday’s close of 26,346.49.

The Singapore Straits Times Index climbed 0.30% within 30 minutes of trading to 3207.45 from an opening figure of 3197.79.

Meanwhile the S&P/ASX 100 in Australia rose 0.65% from an opening mark of 5,679.00 to hit an intraday-high of 5,716.00.

Further up North, in Japan, the Nikkei 225 approached the 23,560.00 mark just right after lunch break, representing an increase of 171.15 or 0.73% from a baseline of 23,388.63.

A separate private survey called the Caixin/Markit PMI also supports the uptick in manufacturing output, with the index rising to 51.8 for the month of November, up from 51.7 in October. This also surpasses Reuters’ predictions of 51.4.

PMI figures above 50 tend to signal expansion in activity, while anything below tend to represent contraction.

Major manufacturers also experienced an early upswing

On the corporate front, major manufacturing company shares across the region also experienced positive movement, following the PMI update.

Chinese construction company China Railway Group Limited, which has a market capitalisation of 132.37 billion yuan, experienced an uptick of 0.70% to begin the day’s trade on the SSE. SAIC Motor, the country’s largest automobile manufacturer, saw share prices drop to a low of 23.10 yuan, before rallying to a high of 23.29 yuan at 11.10am.

On the Nikkei 225, Japanese car maker Toyota Motor Corp saw share prices rise 0.68% within 40 minutes of the market opening, while electronics giant Sony Corp managed an intraday peak price of JPY7,035, up 0.79% from the day’s opening rate of JPY6,980.

South Korean electronics company Samsung Group, listed on the Korea Exchange, achieved a high point of 51,300 Korean Won, as compared to an opening of 51,000 Korean Won.

Practise trading indices with an IG demo account now

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Take a position on indices

Deal on the world’s major stock indices today.

  • Trade the lowest Wall Street spreads on the market
  • 1-point spread on the FTSE 100 and Germany 40
  • The only provider to offer 24-hour pricing

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.