Asian Shares Gain After Steady FOMC, China Manufacturing Data

By Staff,

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Asian stocks rose after the Federal Reserve signaled on Wednesday it has no plans to taper its bond-buying program soon and China's official PMI unexpectedly rose.

China's official monthly manufacturing gauge unexpectedly rose in July to 50.3 from 50.1 the previous month. Any reading above 50 indicates activity is expanding. The result beat expectations for a drop to 49.8 according to estimates reported by Dow Jones Newswires.

However, the HSBC manufacturing Purchasing Managers' Index fell to 47.7 from June's final reading of 48.2.

Further support for Chinese stocks came after the People's Bank of China reportedly offered 34 billion yuan (US$5.55 billion) in short-term loans. It was the second time this week it has sought to bolster liquidity after a months-long lull.

Australian shares edged up despite a local report that the Australian government is planning to institute a deposit insurance tax on banks.

Meanwhile, South Korea's consumer price index gained 1.4% on the year in July - the highest since in February - after rising 1.0% in June, according to Statistics Korea. The July reading was lower than a median 1.5% increase forecast by a Dow Jones poll.

In ADR news, Honda ( HMC ) reported a profit decline.

Sony's ( SNE ) board may reject a proposal from U.S. hedge fund Third Point to spin off its entertainment division, according to the Nikkei.

The Nikkei ended up 2.47% at 14,005.77, the Hang Seng up 0.94% at 22,088.79 and the Straits Times up 0.66% at 3,243.29.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: HMC , SNE

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