Modupe Gbadeyanka
By Investors Hub
Asian stocks closed broadly higher on Thursday as oil prices rebounded, Italy’s political turmoil eased and Chinese data topped forecasts.
Italian president Sergio Mattarella granted Italy’s two populist leaders more time to form a government, helping ease worries that another election will essentially be a referendum on the country’s membership in the European Union.
Chinese shares posted strong gains as investors cheered upbeat manufacturing and non-manufacturing data. The benchmark Shanghai Composite index jumped 56.50 points or 1.9 percent to 3,099.94, while Hong Kong’s Hang Seng Index surged up 411.77 points or 1.4 percent to 30,468.56.
The manufacturing sector in China expanded at a faster rate in May, the National Statistics Bureau said with a manufacturing PMI score of 51.9. That exceeded forecasts for 51.4, which would have been unchanged from the April reading.
The bureau also said that its non-manufacturing PMI came in with a score of 54.9. That also beat expectations for 54.8, which also would have been unchanged.
Japanese shares closed higher on bargain hunting as concerns about Italy’s political turmoil receded. The Nikkei 225 Index climbed 183.30 points or 0.8 percent to finish at 22,201.82 despite a stronger yen. The broader Topix Index rose by 11.32 points or 0.7 percent to 1,747.45.
Japan Petroleum Exploration soared over 5 percent after crude oil prices climbed more than 2 percent overnight. Sumitomo Mitsui Financial, Toyota Motor and Olympus gained 1-3 percent.
On the data front, industrial production in Japan expanded a seasonally adjusted 0.3 percent on month in April, the Ministry of Economy, Trade and Industry said in a preliminary reading. That was well shy of forecasts for 1.4 percent, which would have been unchanged from, the March reading.
Another report showed that Japan’s housing starts rose unexpectedly in April.
Housing starts climbed 0.3 percent year-on-year in April, reversing an 8.3 percent drop in March and confounding expectations for a decline of 8.9 percent. This was the first increase in ten months.
Australian shares eked out modest gains, with miners and energy stocks leading the surge. The benchmark S&P/ASX 200 Index rose 27.20 points or 0.5 percent to 6,011.90, while the broader All Ordinaries Index ended up 29.70 points or 0.5 percent at 6,123.50.
Higher base metal prices helped lift miners, with BHP Billiton and Rio Tinto rising 1.8 percent and 1.2 percent, respectively.
Energy stocks such as Woodside Petroleum, Oil Search and Santos jumped 2-3 percent after oil prices rose more than 2 percent overnight despite data showing an unexpected build in U.S. crude stockpiles.
Evolution Mining and Newcrest Mining rose 1-2 percent after gold prices edged higher overnight. Banks and realty stocks ended subdued after data showed Australia’s housing activity slowed in April.
Myob Group shares slumped 8.2 percent after the software developer abandoned an A$180 million bid to acquire the Australian and New Zealand assets of Reckon’s Accountant Group.
