An electronic board displaying the Nikkei 225 Stock Average and the foreign currency exchange rates is seen at the Tokyo Stock Exchange. Japanese shares rallied 2.11%, or 295.62 points yesterday.

AFP/Tokyo


Asian shares mostly rose yesterday as data indicated an improvement in Chinese manufacturing activity and minutes from the US Federal Reserve showed officials are considering their policy options after the bank’s stimulus programme ends.
Wall Street provided a healthy lead, with all three main indexes well up, while the dollar added to its gains in New York as traders become more confident in higher-yielding, riskier assets.
Tokyo rallied 2.11%, or 295.62 points, to 14,337.79, Sydney jumped 1.02%, or 55.33 points, to 5479.9 and Seoul gained 0.36%, or 7.26 points, to 2,015.59.
Hong Kong rose 0.51%, or 117.24 points, to 22,953.76 but Shanghai closed 0.18% lower, giving up 0.18%, or 3.66 points, to end at 2,021.29.
HSBC said preliminary data from its purchasing managers index (PMI) showed activity in China’s factories declining at a much slower pace in May than in April.
The banking giant’s PMI improved to 49.7 from 48.1 last month.
While the figure is below the 50-mark – suggesting contraction – it is the second straight month of improvement and will fuel hopes that the world’s number two economy is picking up.
“The improvement was broad-based with both new orders and new export orders back in expansionary territory,” Qu Hongbin, HSBC’s Hong Kong-based economist, said in the statement.
“Some tentative signs of stabilisation are emerging, partly as a result of the recent mini-stimulus measures and lower borrowing costs.”
But he added that “downside risks to growth remain, particularly as the property market continues to cool”.
In the US, minutes from the Fed’s April committee meeting showed policymakers are discussing how to manage the impact of an interest rate hike they expect to implement in the middle of next year.
Their talks come as the bank winds down its massive stimulus programme amid growing signs that the US economy is getting back on track after the financial crisis.
And in currency trade the greenback bought 101.60 yen in the afternoon, up from 101.38 yen late in New York and much higher than the 101.17 yen in Tokyo earlier Wednesday.
The euro bought $1.3678 and 138.92 yen against $1.3686 and 138.76 yen in US trade.
Oil prices dropped after rallying late Wednesday on news that US stockpiles had plummeted, lifting hopes that demand is picking up.
In other markets, Taipei climbed 1.21%, or 107.21 points, to 8,969.63, Wellington rose 0.40%, or 20.27 points, to 5,108.57 and Manila rose 1.01%, or 68.20 points, to close at 6,830.56.