SINGAPORE – Shares in the Asia-Pacific traded higher on Monday as China’s versions showed growth in China’s manufacturing activity slowed.
In Japan, the Nikkei 225 rose 2.36% in morning trading as the index tried to recover from its nearly 4% drop on Friday. The Topix index rose 1.7%.
Chinese shares in the mainland were higher as the Shanghai composition rose 0.89% while the Shenzhen component rose 2.03%. The Hang Seng index in Hong Kong rose 1.44%.
Shares in Australia rose higher as the S & P / ASX 200 gained 1.44%.
MSCI’s broadest index of Asia-Pacific stocks outside Japan traded 0.98% higher.
South Korea’s markets closed for a holiday on Monday.
China manufactures PMI
According to China’s official Purchasing Managers’ Index (PMI) for February, it reached 50.6 over the weekend, according to data released by the National Bureau of Statistics.
It was lower than the reading of 51.3 in January, but still above the 50 level that separates expansion and contraction.
A private survey released Monday also showed that China’s manufacturing activity grew more slowly in February.
The Caixin / Markit Manufacturing Purchasing Managers’ Index (PMI) rose to 50.9, a decrease of 51.5 in January.
Levels above 50 in PMI readings represent expansion, while the contraction below means. PMI readings are consecutive and show expansion or contraction by month.
Bond yields fall
The movements in the Asia-Pacific markets took place when yields fell.
The yield on the 10-year treasury note fell to 1.383%, last trading at 1.4169%. Prices move inversely to returns.
In the Asia-Pacific, yields on the Australian 10-year bond fell to 1.652%, after rising above 1.8% last week. The yield on the Japanese government bond for ten years also fell to 0.155%.
Oil prices jump
Oil prices were higher on the morning of trading hours in Asia, with the international standard Brent crude futures contract up 1.92% to $ 65.66 a barrel. U.S. crude futures rose 1.9% to $ 62.67 a barrel.
The US dollar index, which tracks the rate against a basket of its peers, was at 90,812 after recovering from levels below 90 at the end of February.
The Japanese yen traded at 106.60 per dollar, weaker than levels below 105.6 against the greenback seen last week. The Australian dollar changed hands from $ 0.7752, after declining from $ 0.792 last week.
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