SINGAPORE- Asian stocks rebounded from a two-month low on Wednesday as data showing China’s manufacturing activity in February expanded at the fastest pace in more than a decade cheered investors, ofsetting fears over rising interest rates.
China’s official manufacturing purchasing managers’ index (PMI) stood at 52.6 last month against 50.1 in January, based on data from the National Bureau of Statistics, smashing expectations as production zoomed after the lifting of COVID-19 restrictions late last year.
China’s non-manufacturing activity similarly grew at a faster pace in February, while data from the Caixin/S&P Global manufacturing PMI also pointed to a rise in factory activity in February for the first time in seven months.
That sent MSCI’s broadest index of Asia-Pacific shares outside Japan surging more than 1 percent to 516.84, after having bottomed at 509.40 – its lowest since early January – earlier in the session.
Chinese stocks also received a boost, with China’s blue-chip CSI 300 Index jumping more than 1 percent, while the Shanghai Composite Index was last about 0.6 percent higher.
Hong Kong’s Hang Seng Index climbed 2.67 percent, while the Hang Seng Tech Index was up 4 percent. The Hang Seng Mainland Properties Index surged 3.5 percent.
“The China February PMI data this time has assumed even greater importance due to the usual lack of January/February hard data until later this month,” said Alvin Tan, head of Asia FX strategy at RBC Capital Markets.
“The China February official PMIs and Caixin manufacturing PMI all surprised strongly to the upside, and notably higher than the previous January figures.”
Japan’s Nikkei steadied at 27,446.91. — Reuters
