Asia Stocks Rise After China Manufacturing Tops Estimates

Asia Stocks Rise After China Manufacturing Tops Estimates

Asian stocks rose, with a regional benchmark index trading near a four-month high, after a private measure of Chinese manufacturing jumped more than forecast. Trading on Hong Kong markets was delayed due to a storm.

Delta Electronics Inc. a maker of power-supply packs for notebook computers, surged 6.3 percent, leading technology shares higher. Woori Finance Holdings Co. gained 2.4 percent in Seoul amid speculation sales of its regional bank units will succeed. Newcrest Mining Ltd., Australia’s largest gold producer, dropped 6.4 percent after the price of the precious metal slumped on Sept. 20.

The MSCI Asia Pacific excluding Japan Index climbed 0.2 percent to 470.35 as of 12:41 p.m. in Sydney. The gauge reached a four-month high on Sept. 19 after the Federal Reserve maintained its bond-buying program. Japan’s market is closed today for a holiday.

“It’s an indication of a continuing expansion,” Hao Hong, Hong Kong-based strategist at Bank of Communications Co., told Bloomberg TV. “As long as we continue to see economic expansion, the depressed expectations will continue to reverse and that is positive for the market.”

The Asia-Pacific gauge rallied 7.9 percent this month through Sept. 20 amid signs China’s economic growth is stabilizing. That pushed valuations to 13 times estimated earnings, compared with 15.5 times on the S&P 500 and a multiple of 14.4 for the Stoxx Europe 600 Index, according to data compiled by Bloomberg.

Chinese Manufacturing

Chinese factory output expanded for a second month in September. A preliminary HSBC Holdings Plc and Markit Economics’ purchasing managers index released today rose to 51.2 after jumping the most since 2010 to 50.1 in August. A pickup in China’s growth may boost Premier Li Keqiang’s odds of meeting this year’s 7.5 percent expansion goal. The final reading of the manufacturing PMI from HSBC and Markit will be released Sept. 30.

China’s Shanghai Composite Index added 0.6 percent as mainland Chinese bourses resuming trading today for the first time since the Federal Reserve unexpectedly announced Sept. 18 that it needed more evidence of a U.S. economic recovery before paring its economic stimulus program.

Australia’s S&P/ASX 200 Index slid 0.4 percent, South Korea’s Kospi index added 0.4 percent and New Zealand’s NZX 50 Index declined 0.8 percent. Futures on the Standard & Poor’s 500 Index rose 0.1 percent.

Typhoon Usagi

Taiwan’s Taiex Index climbed 0.9 percent as technology firms advanced. Delta Electronics rose 6.3 percent to NT$144 and Taiwan Semiconductor Manufacturing Co. advanced 1.9 percent to NT$105.

Hong Kong lowered its storm signal level, with trading set to resume in the afternoon after the morning session was canceled. Typhoon Usagi made landfall in southern China, forced hundreds of flights to be canceled and left travelers stranded.

Woori Finance advanced 2.4 percent to 12,750 won in Seoul. The shares are rising on anticipation sales of Woori’s regional bank units Kyongnam Bank and Kwangju Bank may go well, according to Hwang Seok Kyu, a Seoul-based analyst at Kyobo Securities Co.

The Fed’s decision last week to maintain record stimulus also reduced concern over capital outflows from the Asian region, increasing foreign investor appetite for Korean bank stocks, the analyst said.

Gold producers declined after the precious metal dropped 3 percent on Sept. 20. Newcrest Mining sank 6.4 percent to A$12.265 in Sydney and Perseus Mining Ltd. retreated 13 percent to 58 Australian cents.

Treasury Wine Estates Ltd. lost 5.7 percent to A$4.48 in Sydney after the world’s second-largest publicly traded wine maker said Chief Executive Officer David Dearie will leave.