Asian stocks rose for the stabilization of manufacturing activity

Moscow. November 3. Asian stocks rose Tuesday after the significant decline on the results of the previous session, Bloomberg reported.

The market had a rise of stock indices in the U.S. and Europe resulting from the stabilization of manufacturing activity in the world.

China’s Shanghai Composite rose during trading on Tuesday, less than 0.1%, the Hang Seng index gained 1.4% and the Australian S&P/ASX 200 was 1.4%, South Korean KOSPI is up 0.6%.

Exchange Japan closed for holiday – Day of culture.

Indicators of business activity in the manufacturing sector of China in October published on 1 and 2 November, had stabilized, albeit at levels below 50, indicating continued weakness in this sector of the economy.

The purchasing managers index (PMI) in the process industries, published by Caixin and Markit, in October rose to 48.3 points from 47.2 in September. A similar index published by the National Bureau of statistics, has not changed and amounted in October to 49.8 points. Analysts polled by Bloomberg, expected an average of 50 points.

“China is now considered a weak link and until we see stability in China, markets will continue to grow,” – said the managing Director of Funds Management Angus Gluski.

Meanwhile, the PMI for the industrial sector from 18 countries of the Eurozone last month rose to 52.3 per item, according to final data research organization Markit Economics. Preliminary data pointed to the preservation of the index at the September level 52 item, and analysts did not expect changes in valuation.

The manufacturing activity index in the US (ISM Manufacturing) has decreased in October 2015 to 50.1 from 50.2 points a month earlier, according to the Institute for supply management (ISM). Experts on average had forecast the index to 50 points.

“On Tuesday the market is recovering after the overly negative reactions to Chinese statistics before, – says CEO of Partners Capital International in Hong Kong, Ronald van. – We are now seeing a period of consolidation”.

The Australian Central Bank on Tuesday kept its benchmark interest rate at a record low 2% yearly, noting “moderate recovery” in the economy, and the fact that the previous decline in rates has helped to support credit growth and consumer spending.

Share prices of Chinese companies in Hong Kong raised in the course of trading, rising shares of financial companies and automakers.

Paper China Life Insurance went up by 3.3%, Citic Securities – 1.9%.

The price of the Dongfeng Motor jumped 3.4%, BYD Co. 1.7%.

The index of Chinese companies in Hong Kong Hang Seng China Enterprises rose during trading by 1.1% after declining during the previous five sessions.