Asia Stocks Advance on Positive Chinese Factory Activity amid Emerge Covid-19 Cases

Stocks in Asia opened positive as the Caixin/Markit manufacturing Purchasing Managers Index came in at 51.2, beating a 50.4 reading, polled by economists.

 

As of 9:10 local time in Thailand (GMT+7), Nikkei gained 0.05%, SSEC rose 0.28%, HSI edged 0.52%, ASX 200 advanced 0.87% and Kospi hiked 1.07%.

 

On Wednesday morning, the Caixin/Markit manufacturing Purchasing Managers Index reported an increase to 51.2, better than the 50.5 reading polled by economists and 50.7 in May.

Yesterday, China stated that its June manufacturing activity expanded with the official Purchasing Managers Index at 50.9, beating a forecast of 50.4 by Reuters Poll. Beijing pointed out that its supply and demand are picking up from earlier losses, while new orders are increasing for two straight months.

However, the sentiment is still murky as the new coronavirus cases continued to rise, reporting 10.37 million cases worldwide with 506,136 deaths. Meanwhile, the U.S. reported more than double coronavirus cases in 14 states in June, including California, Florida and Texas.

 

Krungsri Securities expected SET Index to move between 1,330-1,350 points due to a lack of positive factors to buoy the market, even though the regional markets were positive on the better-than-expected Chinese and strong U.S. economic data.