KUALA LUMPUR: Asian markets traded higher on Monday, Aug 2 on expectations of robust corporate earnings despite China's official purchasing managers' index (PMI) falling to a 17-month low in July of 51.2 from 52.1 in June.
The PMI is designed to provide a timely snapshot of business conditions and a figure above 50 indicates expansion.
On Monday, an index based on a nationwide survey of business executives conducted for HSBC showed Chinese manufacturing shrank in July for the first time since the global downturn in March 2009 on government steps to slow bank lending and fight property speculation.
The index dropped to 49.4 from 50.4 in June.
Although the index pointed to a month-on-month contraction in manufacturing, it was still consistent with annual growth in Chinese industrial production of 11%-13%, HSBC was quoted by Reuters as saying.
Asian stocks rose on Monday as investors snapped up shares of firms with robust corporate earnings, helping the market shrug off the lacklustre US and Chinese economic data, said Reuters.
At the regional markets, Hong Kong's Hang Seng Index rose 1.29% to 21,300.14, the Shanghai Composite Index up 1.16% to 2,668.03, Taiwan's Taiex added 1.77% to 7,898.37, the South Korean Kospi added 1.22% to 1,780.83, Singapore's Straits Times Index rose 0.84% to 3,012.72 while Japan's Nikkei 225 rose 0.64% to 9,598.07.
At Bursa Malaysia, the FBM KLCI rose 1.33 points to 1,362.25 at the mid-day break, lifted by gains including at Tanjong, CIMB, Public Bank and BAT.
Gainers led losers by 386 to 231, while 261 counters traded unchanged. Volume was 498.8 million shares valued at RM537.15 million.
Commodities also rose on the upbeat investor sentiment, with crude palm oil for the third month delivery jumping RM38 per tonne to RM2,550, while gold rose US$2.60 per ounce to US$1,183.60 (RM3,740.18).
Oil rose towards 12-week highs above US$79 on Monday, driven by investor appetite for commodities and energy risk, with macroeconomic indicators in top consumers the United States and China showing slower but sustained growth, said Reuters.
At 1pm, crude oil was up 16 US cents per barrel to US$79.11.
On Bursa Malaysia, Tanjong jumped RM3.56 to RM21.14 with 1.71 million shares done after it resumed trade following a conditional takeover offer from Tanjong Capital Sdn Bhd at RM21.80.
Tanjong Capital is a special purpose vehicle established by Usaha Tegas Sdn Bhd and its concert parties to acquire all the ordinary shares in Tanjong with a cash offer price of RM21.80 per share. This valuesTanjong at RM8.8 billion, with minority shares valued at up to RM4.7 billion.
Currently, Usaha Tegas and parties acting in concert own 46.9% of Tanjong and do not intend to maintain Tanjong's listing status.
CIMB rose five sen to RM7.45, Public Bank four sen to RM12.20, BAT 48 sen to RM45.38, PPB eight sen to RM17.42 while IOI Corp added one sen to RM5.13. Other gainers included Nestle, Batu Kawan, Chin Teck and Guan Chong.
Among the decliners, Sime Darby fell 10 sen to RM7.70, Petronas Dagangan eight sen to RM10.20, Genting seven sen to RM7.92, Hong Leong Bank 11 sen to RM8.90 while Axiata fell three sen to RM4.23.
Notion Vtec fell 19 sen to RM2.43, Tasek eight sen to RM6.53, while Naim and QSR lost seven sen each to RM3.30 and RM4.25.
Talam was the most actively traded counter with 41.2 million shares done. The stock added one sen to 12.5 sen.
Other actives included KNM, Sinotop, E&O, Malton, Equine, Ivory PROPERTIES [] and MPHB. Pacific & Orient was actively traded on news reports that Prudential could be keen to acquire a stake in the insurance company.
The counter rose 12.5 sen to RM1.05 with 12.82 million shares traded at the mid-day break.
A wire report said Prudential could be targeting stake in the local insurer.
P&O posted net profit of RM3.247 million in its second quarter ended March 31, 2010 versus RM2.51 million a year ago. Its revenue was RM134.83 million versus RM111.63 million a year ago.
The PMI is designed to provide a timely snapshot of business conditions and a figure above 50 indicates expansion.
On Monday, an index based on a nationwide survey of business executives conducted for HSBC showed Chinese manufacturing shrank in July for the first time since the global downturn in March 2009 on government steps to slow bank lending and fight property speculation.
The index dropped to 49.4 from 50.4 in June.
Although the index pointed to a month-on-month contraction in manufacturing, it was still consistent with annual growth in Chinese industrial production of 11%-13%, HSBC was quoted by Reuters as saying.
Asian stocks rose on Monday as investors snapped up shares of firms with robust corporate earnings, helping the market shrug off the lacklustre US and Chinese economic data, said Reuters.
At the regional markets, Hong Kong's Hang Seng Index rose 1.29% to 21,300.14, the Shanghai Composite Index up 1.16% to 2,668.03, Taiwan's Taiex added 1.77% to 7,898.37, the South Korean Kospi added 1.22% to 1,780.83, Singapore's Straits Times Index rose 0.84% to 3,012.72 while Japan's Nikkei 225 rose 0.64% to 9,598.07.
At Bursa Malaysia, the FBM KLCI rose 1.33 points to 1,362.25 at the mid-day break, lifted by gains including at Tanjong, CIMB, Public Bank and BAT.
Gainers led losers by 386 to 231, while 261 counters traded unchanged. Volume was 498.8 million shares valued at RM537.15 million.
Commodities also rose on the upbeat investor sentiment, with crude palm oil for the third month delivery jumping RM38 per tonne to RM2,550, while gold rose US$2.60 per ounce to US$1,183.60 (RM3,740.18).
Oil rose towards 12-week highs above US$79 on Monday, driven by investor appetite for commodities and energy risk, with macroeconomic indicators in top consumers the United States and China showing slower but sustained growth, said Reuters.
At 1pm, crude oil was up 16 US cents per barrel to US$79.11.
On Bursa Malaysia, Tanjong jumped RM3.56 to RM21.14 with 1.71 million shares done after it resumed trade following a conditional takeover offer from Tanjong Capital Sdn Bhd at RM21.80.
Tanjong Capital is a special purpose vehicle established by Usaha Tegas Sdn Bhd and its concert parties to acquire all the ordinary shares in Tanjong with a cash offer price of RM21.80 per share. This valuesTanjong at RM8.8 billion, with minority shares valued at up to RM4.7 billion.
Currently, Usaha Tegas and parties acting in concert own 46.9% of Tanjong and do not intend to maintain Tanjong's listing status.
CIMB rose five sen to RM7.45, Public Bank four sen to RM12.20, BAT 48 sen to RM45.38, PPB eight sen to RM17.42 while IOI Corp added one sen to RM5.13. Other gainers included Nestle, Batu Kawan, Chin Teck and Guan Chong.
Among the decliners, Sime Darby fell 10 sen to RM7.70, Petronas Dagangan eight sen to RM10.20, Genting seven sen to RM7.92, Hong Leong Bank 11 sen to RM8.90 while Axiata fell three sen to RM4.23.
Notion Vtec fell 19 sen to RM2.43, Tasek eight sen to RM6.53, while Naim and QSR lost seven sen each to RM3.30 and RM4.25.
Talam was the most actively traded counter with 41.2 million shares done. The stock added one sen to 12.5 sen.
Other actives included KNM, Sinotop, E&O, Malton, Equine, Ivory PROPERTIES [] and MPHB. Pacific & Orient was actively traded on news reports that Prudential could be keen to acquire a stake in the insurance company.
The counter rose 12.5 sen to RM1.05 with 12.82 million shares traded at the mid-day break.
A wire report said Prudential could be targeting stake in the local insurer.
P&O posted net profit of RM3.247 million in its second quarter ended March 31, 2010 versus RM2.51 million a year ago. Its revenue was RM134.83 million versus RM111.63 million a year ago.
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