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Asia Markets Rise as China’s Factory Activity Contracts for Fourth Straight Month

Asia-Pacific markets rose on Monday as China’s factory activity for July remained in contraction territory for the fourth straight month.

The official manufacturing purchasing managers index came in at 49.3, higher than June’s figure of 49.0, according to the national bureau of statistics.

The PMI for non-manufacturing activity came in at 51.5, a slower rate of expansion compared to the 53.2 in June.

Hong Kong’s Hang Seng index rose 0.83% in its final hour of trade, while the Hang Seng Tech index saw a larger climb of 1.87%. At current levels, this would be the first time that the HSI breached the 20,000 mark in over a month.

Mainland Chinese markets were all higher as well but pared earlier gains, with the Shanghai Composite up 0.46% to finish at 3,291.04 and the Shenzhen Component 0.75% higher to end at 11,183.91.

.N225Nikkei 225 Index*NIKKEI33459.86287.640.87
.HSIHang Seng Index*HSI20077.72-1.22-0.01
.AXJOS&P/ASX 200*ASX 2007468.958.50.79
.KS11KOSPI Index*KOSPI2657.324.720.94
.FTFCNBCACNBC 100 ASIA IDX*CNBC 1008800.2925.350.29

Japan’s Nikkei 225 gained 1.26% to close at 33,172, while the Topix saw a larger rise of 1.39% to end the day at 2,322.56, setting a new 33-year record. The country’s industrial output for June came in lower than expected, registering a 2% growth month on month compared to the 2.4% expected by economists.

South Korea’s Kospi advanced 0.93% to end at 2,632.58 and recorded a third straight day of gains. The Kosdaq climbed 2.25% to close at 935.97, near its 16-month high.

Australia’s S&P/ASX 200 climbed marginally and closed at 7,410.4, as investors prepare for the Reserve Bank of Australia’s rate decision on Tuesday. Economists polled by Reuters were expecting a 25 basis points hike in its benchmark policy rate to 4.35%.

On Friday in the U.S., all three major indexes gained as June data for the personal consumption expenditures price index continued to show easing inflation. Core PCE gained 0.2% month-over-month, and core PCE rose 4.1% from the year-ago period, lower than the anticipated 4.2%

The Dow rose 0.5%, while the S&P 500 added and the Nasdaq Composite advanced 1.90%.

Source : CNBC