Date: Monday 02 Aug 2010
The China Federation of Logistics and Purchasing and the National Bureau of Statistics said the country’s official PMI fell to 51.2 in July from 52.1 in June, the third consecutive monthly decline. It also expanded at the slowest rate in 17 months in July. The data boosted hopes that China will take a more cautious approach to tightening monetary policy.
HSBC was up 0.75% ahead of its half-year earnings today. Resource stocks enjoyed strong gains with China Shenhua up 3.34% and PetroChina gaining 2.27% in Hong Kong.
The Hang Seng index advanced 382 points at 21,413.
The Nikkei gained 0.35% on Monday with strong corporate earnings underpinning buyer appetite.
Investors in Tokyo overlooked a weak close on Wall Street on Friday and disappointing US GDP data. Honda shares surged 4.02% after it posted record quarterly net profit of 272.49bn yen on Friday. The car maker also increased its full year outlook.
Financials succumbed to profit taking after posting robust first quarter earnings on Friday. Mitsubishi UFJ Financial fell 0.47% while Mizuho Financial Group lost 1.42%.
Shares of All Nippon Airways rose 2% after it narrowed first quarter net loss on Friday.
The Nikkei 225 index closed up 33 points at 9,570 in Tokyo.
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