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
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 (
) reported a profit decline.
) 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.
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