SYDNEY/NEW YORK- Asian share markets began the new month with a bang on Tuesday, buoyed by the prospect of a COVID-19 vaccine fueling a global economic recovery, buoyant Chinese factory activity and expectations of continuing fiscal and monetary support.
MSCI’s broadest index of Asia-Pacific sharesoutside Japan added 1.08 percent after closing
the month 9 percent higher, the best November
China’s blue-chip CSI300 index jumped to be 1.56 percent higher on Tuesday, after a business survey showed on Tuesday activity in China’s factory sector accelerated at the fastest pace in a decade in November.
“That was one of the strongest readings we’ve had for many, many, many years in China, indeed, supporting the broader economic recovery story for the region,” said John Woods, Asia Pacific Chief Investment Officer at Credit Suisse’s Private Bank.
“Where the China PMI goes, the MSCI Asia ex-Japan follows, so we would expect to see further capital appreciation on the strong growth story in China.”
Japan’s Nikkei was up 1.34 percent while South Korea was up 1.5 percent. Australia’s S&P/ASX 200 was 1 percent higher after Australia’s central bank said the country’s economy would need fiscal and monetary support “for some time” while noting the run of better news.