Asian shares gained on Monday, with China leading the way as monthly surveys showed improving conditions for manufacturing. The strong performance was partly driven by a surge in orders ahead of President-elect Donald Trump’s inauguration next month. Both official and private sector surveys of factory managers in China showed strong new orders and export orders.
This could be partly linked to efforts by importers in the U.S. to beat potential tariff hikes once Trump takes office. On Saturday, Trump threatened the so-called BRIC bloc of nine nations if they act to undermine the U.S. dollar. The BRICs include Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates.
Trump said he wants the bloc to promise it won’t create a new currency or otherwise try to undercut the U.S. dollar. “Asia’s markets are riding a wave of optimism, catching a significant tailwind from Wall Street’s record-setting day on Friday and buoyed further by emerging signs that China’s economic funk might be easing,” said Stephen Innes of SPI Asset Management in a commentary. Hong Kong’s Hang Seng gained 0.7% to 19,550.29, while the Shanghai Composite index jumped 1.1% to 3,363.98.
Taiwan’s Taiex surged 2.1%. In Tokyo, the Nikkei 225 index advanced 0.8% to 38,513.02, as the U.S. dollar regained some strength against the Japanese yen, boosting exporters. Toyota Motor Corp.
gained 2.3%.
china manufacturing boosts asian shares
In South Korea, the Kospi slipped less than 0.1% to 2,454.48, while Australia’s S&P/ASX 200 edged 0.1% higher to 8,447.90.
In Bangkok, the SET jumped 0.7%. On Friday, the S&P 500 ended up 0.6% at 6,032.38, while the Dow gained 0.4% to 44,910.65. The Nasdaq added 0.8% to 19,218.17.
Some retailers advanced as Black Friday unofficially kicked off the holiday shopping season. Macy’s and Best Buy each gained around 2%. Tesla shares rose 3.7% Friday and posted a monthly increase of more than 38%.
The electric vehicle maker is expected to benefit from CEO Elon Musk’s support of Trump. Apple rose 1.1%. The technology giant is hoping recently added artificial intelligence features are enough to entice consumers to treat themselves or their relatives to a new iPhone for the holidays.
In other dealings early Monday, U.S. benchmark crude oil gained 66 cents to $68.66 per barrel. Brent crude, the international standard, picked up 70 cents to $72.54 per barrel. The U.S. dollar rose to 150.35 Japanese yen from 149.70 yen.
The euro slipped to $1.0514 from $1.0589.
