Asian shares push ahead on hopeful signs for global growth

Tue Jun 24, 2014 2:22am EDT
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By Wayne Cole

SYDNEY (Reuters) - Asian shares ticked higher on Tuesday as improved manufacturing data from China, Japan and the United States augured well for global growth, despite a disappointing result from the euro zone.

After a sluggish start the majority of markets across the region struggled ahead through the session, pushing MSCI's broadest index of Asia-Pacific shares outside Japan up 0.4 percent.

Japan's Nikkei recouped early losses to add 0.05 percent, while Shanghai firmed 0.2 percent. South Korea outperformed with a rise of 1 percent, led by Samsung Electronics Co Ltd and Hyundai Motor Co.

"Market heavyweights closely follow global economic recovery, and the manufacturing surveys in the U.S. and China have provided positive signals," said Hyundai Securities market analyst Bae Sung-young.

The performance of manufacturing surveys (PMI) tend to be reliable, and timely, leading indicators of output trends and are closely watched by economists.

So there was relief that readings from the United States, China and Japan all rose strongly in the month. The U.S. PMI was a particularly pleasant surprise as it climbed to a four-year peak of 57.5.

That helped offset an unexpected dip in Markit's euro zone PMI to 52.8 in June from May's 53.5.

David Hensley, an economist at JPMorgan, said the PMI's taken as a whole pointed to a quickening in global industrial output, perhaps to as much as a 5 percent annualised pace.   Continued...

A pedestrian is reflected on an electronic board showing the graph of the recent fluctuations of the Tokyo Stock Exchange Stock Price Index (TOPIX), outside a brokerage in Tokyo June 2, 2014. REUTERS/Yuya Shino