Asian shares rise on US data

HONG KONG: Asian stocks mostly rose on opening Wednesday, rebounding off strong US manufacturing data while the weaker yen gave Tokyo a boost.

Traders reacted to the Institute for Supply Management´s announcement Tuesday that activity in the US manufacturing sector picked up pace in August, vaulting to its best level since August 2011.

"The parade of solid data continues," a Societe Generale analyst told Dow Jones newswires.

Tokyo was up 0.83 percent by the break, Hong Kong rose 0.92 percent, Shanghai gained 0.69 percent, while Seoul was flat as was Sydney after the release of data showing the Australian economy lost pace in the second quarter.

The strong US manufacturing data "should keep upward pressure on the dollar, which will, in turn, make Japan stocks attractive," said SMBC Nikko Securities general manager of equities Hiroichi Nishi.

A weaker yen boosts Japanese exporters as it inflates their profits when repatriated.

A sharp fall in exports hit Australian growth in the second quarter, with the economy expanding by just 0.5 percent following a strong start to the year, according to data released Wednesday.

Growth had soared to 1.1 percent in the three months to March.

Annual growth was 3.1 percent, compared with year-on-year expansion of 3.5 percent in the first quarter.

Meanwhile, Chinese shares were higher in morning trade on hopes a planned scheme to link the Shanghai and Hong Kong stock exchanges will attract more funds.

Analysts are looking ahead for news on additional possible monetary stimulus from Thursday´s European Central Bank meeting. Friday´s US jobs report could also move the market.

The Bank of Japan also opened a two-day policy meeting Wednesday amid calls for fresh measures to kickstart the economy following a recent batch of weak economic figures.

Despite the strong US figures the Dow fell 0.19 percent and the S&P 500 slipped 0.07 percent although the Nasdaq added 0.39 percent.

The dollar was at 105.18 yen in Asian trade early Wednesday, compared with 105.10 yen in New York Tuesday afternoon.

The euro bought $1.3131 and 138.19 yen against $1.3132 and 138.02 yen in US trade.

Oil prices rebounded on bargain hunting after plunging to multi-month lows in New York trade. US benchmark West Texas Intermediate for October delivery rose 25 cents to $93.13 while Brent crude for October gained 18 cents to $100.52.

Gold traded at $1,267.31 an ounce at 0200 GMT, from $1,271.33 late Monday. (AFP)