Article by ForexTime
The main news releases out of Asia today were from China and Japan, with focus being on the Purchasing Managers Index from both countries.
The HSBC manufacturing PMI from China showed an increase to an 18-month high in July, adding to signs that the government will meet its 2014 economic-growth target of about 7.5 percent. The index gave a reading of 52, compared with the 51 median estimate of analysts and up from a final reading of 50.7 in June. Any figure above 50 indicates expansion.
The upbeat data pushed up China’s Shanghai Composite Index by 0.8 percent, while the city’s benchmark Hang Seng Index added 0.4 percent, heading for its highest close since April 2011.
Meanwhile in Japan, the country’s manufacturing activity expanded at a slower pace in July than in the previous month. The Markit/JMMA flash PMI fell to a seasonally adjusted 50.8 in July from a final reading of 51.5 in June.
Also Japan’s trade deficit was larger than economists forecast after exports unexpectedly fell. The shortfall in June was 822.2 billion yen, surpassing the 643 billion yen median estimate. Exports shrank 2 percent from a year earlier, while imports rose 8.4 percent. This led to a drop in Japan’s Topix by 0.1 percent and a rise in the yen.
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