Asian stocks rise after disappointing U.S. manufacturing data
Asian stock markets rose Wednesday following surprise weakness in U.S. manufacturing and wrangling in the U.K. over the country’s departure from the European Union.
Benchmarks in Shanghai, Tokyo and Hong Kong advanced.
The Institute for Supply Management, an association of purchasing managers, said its manufacturing index slid to a 3½-year low of 49.1 last month from July’s 51.2.
A global softening in demand, aggravated by the U.S.-Chinese tariff war, appears to be hurting American manufacturers. More than half of the public comments from companies surveyed by ISM pointed to economic uncertainty as a drag on their businesses.
“This is perhaps one of the stronger signs that the U.S. is likewise feeling the weight from the on-going uncertainties alongside the world,” said Jingyi Pan of IG in a report.
In London, Prime Minister Boris Johnson suffered a setback when Parliament agreed to allow his opponents to introduce legislation that would block Britain from leaving the EU without an agreement on terms of their future trade and other relations. Britain is due to withdraw Oct. 31, a deadline the trade bloc’s other members would have to agree to postpone.
Johnson’s plan to call a new election to reinforce his position “could again induce more volatility,” said Mizuho Bank in a report.
The Shanghai Composite Index rose 0.6 per cent to 2,947.49 and Tokyo’s Nikkei 225 was six points higher at 20,631.14. Hong Kong’s Hang Seng advanced 1.6 per cent to 25,948.21.
South Korea’s Kospi gained 0.2 per cent to 1,970.03 while Sydney’s S&P-ASX 200 lost 0.5 per cent to 6,539.70.
Markets in Taiwan, New Zealand and Singapore also advanced.