Asian stocks were mostly up today (April 23rd) despite a private survey showing China's manufacturing activity is at a one-year low. HSBC's preliminary reading of China's factory activity for April came in at 49.2, which is below a Reuters forecast of a 49.6 score.
However, markets in the region were boosted by Japanese shares, which gained on a weaker yen, and by technology companies, with Nomura Holdings Inc. adding 2.9 per cent and Hanergy Thin Film Power Group Ltd. rising 14 per cent in Hong Kong.
“The world is awash with easy money,” Ayako Sera, a Tokyo-based market strategist at Sumitomo Mitsui Trust Bank Ltd., told Bloomberg. "With negative yields creeping up in Europe, there’s no place to leave cash. In Japan, while yields aren’t negative, they’re very low. So among the lousy options, putting cash into stocks seems like a reasonable choice."
Japan's Nikkei 225 closed above the 20,000 mark for the second consecutive day, gaining 0.3 per cent to 20,202.08. Hong Kong's Hang Seng index added 0.4 per cent to 28,040.37 and South Korea's Kospi gained 0.8 percent to 2,160.90. However, Australia's S&P ASX/200 edged down 0.1 per cent to 5,831.60.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.