Stocks in Asia Pacific traded higher on Tuesday morning ahead of the release of China’s official manufacturing Purchasing Managers’ Index for March, expected at 9:00 a.m. HK/SIN.
Australian shares led gains in the region’s major markets, with the S&P/ASX 200 up 3.17%. The moves came after the index got off to a flying start to the week and surged by 7% on Monday.
Over in South Korea, the Kospi also rose 1.63% while the Kosdaq index gained 2.58%. Japan’s Nikkei 225 saw more muted gains as it added 0.51%, while the Topix index advanced 0.13%.
Overall, the MSCI Asia ex-Japan index traded 0.76% higher.
Investors will be watching for the release of China’s official manufacturing PMI for March on Tuesday morning. The data could offer clues to the scale of economic impact from the coronavirus outbreak in China, where the disease was first reported.
“We expect the official manufacturing PMI to rebound from 35.7pt in February to 45pt in March,” Joseph Capurso, senior currency strategist at Commonwealth Bank of Australia, wrote in a note. “That would be above the GFC‑low of 38.8pt reached in November 2008,” he said referring to the Global Financial Crisis.
PMI readings below 50 signify a contraction, while figures above that level indicate an expansion.
Overnight on Wall Street, the Dow Jones Industrial Average rose 690.70 points to close at 22,327.48 while the S&P 500 added 3.4% to end its trading day at 2,626.65. The Nasdaq Composite also closed 3.6% higher at 7,774.15.
Oil prices attempted to rebound from the previous day’s plunge in the morning of Asian trading hours on Tuesday. International benchmark Brent crude futures gained 1.19% to $23.03 per barrel. U.S. crude futures were also up 2.84% to $20.66 per barrel.
The moves came after oil prices plummeted Monday to levels not seen in almost two decades — Brent fell 8.7% to settle at $22.76 per barrel, a price last seen in 2002. U.S. crude fell 6.6%, or $1.42, to settle at $20.09, its lowest level since February 2002.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 99.221, below levels above 100 seen last week.
The Japanese yen traded at 108.04 per dollar after touching an earlier high of 107.72. The Australian dollar changed hands at $0.6167, still above levels below $0.6 seen last week.
Here’s a look at what’s on tap in the trading day ahead:
- China: Official manufacturing PMI and non-manufacturing PMI for March at 9:00 a.m. HK/SIN
— CNBC’s Pippa Stevens contributed to this report.