By Virginia Harrison, MarketWatch
SYDNEY (MarketWatch) — Asia stocks pushed higher Tuesday, with resource stocks and auto-makers among the best performers, with investors encouraged by signs of relative improvement in the Chinese economy.
Hong Kong’s Hang Seng Index HK:HSI +1.08% rose 1.1% and China’s Shanghai Composite CN:000001 +1.23% added 1.2%.
South Korea’s Kospi KR:0100 +3.86% and Taiwan’s Taiex — the two regional indexes that are among the biggest losers so far in August — surged 3.9% and 3.3%, respectively.
Japan’s Nikkei Stock Average JP:NIK +1.22% ended the day 1.2% higher, while Australia’s S&P/ASX 200 index AU:XJO +2.23% gained 2.2%.
Early gains in Asian came after sentiment recovered somewhat in the U.S. Monday, where stocks snapped a three-day losing streak to notch mild gains. Read more on the U.S. session.
Markets are looking ahead to Federal Reserve Chairman Ben Bernanke’s speech at Jackson Hole, Wyo. on Friday.
“The chairman will reiterate the policy tools available to him and the willingness to use them if necessary. An important preliminary step will be to revise down the outlook for growth and inflation so that their forecasts are consistent with further policy easing,” strategists at BNP Paribas said. Read a preview of Bernanke’s speech
In Tokyo trading, battered technology-sector firms were among the strongest performers, with NEC Corp. JP:6701 +3.38% up 3.4%, Fujitsu Ltd. JP:6702 +2.14% FUJIY -0.53% gaining 2.1% and shares in Toshiba Corp. JP:6502 +3.24% rising 3.2%.
In Seoul, shares in Samsung Electronics Co. SSNHY 0.00% rose 4.6%. The gains came after the South Korean firm’s Samsung Mobile Display unit formed an alliance U.S. company Universal Display Corp. PANL +24.50% to develop next-generation display technology.
China manufacturing
Asian stock gains were cemented after HSBC’s preliminary reading of a survey on China’s manufacturing activity in August showed the monthly flash Purchasing Managers’ Index (PMI) edged up to 49.8 from July’s final reading of 49.3.
While the index remains below the 50-level that separates expansion from contraction, investor sentiment was encouraged by the improvement from last month. Read more on China’s PMI.
“[The China PMI] data suggests that the hard landing risk is still remote. This provides leeway for the People’s Bank of China to keep the current tightening measures in place,” HSBC economist Hongbin Qu said in a note accompanying the preliminary PMI release.
RBC Capital Markets strategists added: “[The data] showed a small increase in the headline index compared with earlier rumors of a big fall, and this was enough to prompt some short covering of risk assets.”
Auto-makers jumped after the data, with Hyundai Motor Co. Ltd. HYMLY 0.00% soaring by 10.2% and Kia Motors Corp. KIMTF +19.05% by 9.3% in Seoul trading.
Resource stocks also accelerated gains in Asia, with China Coal Energy Co. HK:1898 +3.10% CCOZY -1.77% surging 3.1% in Hong Kong trading.
In Sydney, BHP Billiton Ltd. AU:BHP +1.81% BHP +0.19% added 1.8%, Fortescue Metals Group Ltd. AU:FMG +4.11% FSUMY -1.67% gained 4.1% and Rio Tinto Ltd. AU:RIO +2.01% RIO -0.52% rose 2.2%.
The energy sector posted strong gains on a rebound in crude-oil prices, with Beach Energy Ltd. AU:BPT +3.70% BCHEY 0.00% up 3.7%, Santos Ltd. AU:STO +4.54% SSLTY +4.38% rising 4.5% in Sydney, and Cnooc Ltd. HK:883 +2.26% CEO -1.59% added 2.4% in Hong Kong trading.
Origin Energy Ltd. AU:ORG +5.04% jumped 5% after it reported a 15% rise in underlying profit as higher commodity prices helped lift revenue.
