Asian Stocks Climb on China Data, Yellen Remarks

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Asia Stocks Climb on China Data, Yellen RemarksAsia stocks surged in their fifth straight day buoyed by growth registered in information technology companies as investors evaluated missed signals from Chinese manufacturing data.

The MSCI Asia Pacific Index stood at 138.41 as of 6.29 PM in Tokyo, having advanced 0.3% and recovering from losses by up to 0.4%. The Equity benchmark plunged 2.4% in first three months of 2014 that ended yesterday.

Statistics from HSBC Holdings and Markit Economics, which measure performance of the private sector for the most part, showed that the Chinese purchasing managers’ Index declined 0.5 points from 48.5 to 48 in March. The official gauge from the government, which covers a broader sample, indicated that the Chinese purchasing managers’ Index increased from 50.2 to 50.3 this month.

Mainland stocks recovered, backed by solid gains in liquor firms, after falling to a more than one week low at closing on Monday. Kweichow Moutai advanced 5.0% and Jiangsu Yanghe Brewery jumped 5.2%.

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“State-owned enterprises are seeing a slowdown in growth, but it’s not as severe as small, mid-size enterprises,” Baring Asset Management’s Khiem Do was quoted by Bloomberg as saying.

Retailers grew following news that the Beijing’s monthly minimum wage is bound to increase 11.4 to 12.3% from Tuesday.

South Korea’s blue-chip Kospi rebounded from early losses to reach a closing high that was last recorded three months ago, for a third straight session.  The recovery followed announcement by Lee Ju-Yeol, governor of Bank of Korea, that the monetary regulator would keep a consistent and predictable policy.

Gains in Asia stocks were partly attributed to remarks by chair of the US Federal Reserve, according to CNBC. The Dow posted triple-digits after Federal Reserve Chair Janet Yellen said there is still sufficient room for the fed to boost the economy.

Speaking at Chicago, Yellen said the Fed is committed to significant levels of bond-buying for some time.

To contact the reporter of this story; Jonathan Millet at john@forexminute.com