Shares in Asia-Pacific rose in Monday morning trade as investors look ahead to the release of a private survey on Chinese manufacturing activity in July.
In Japan, the Nikkei 225 jumped 1.01% in early trade while the Topix index gained 1%. South Korea’s Kospi advanced 0.41%.
The S&P/ASX 200 in Australia climbed 0.32%. Shares of Afterpay soared more than 25% after U.S. fintech firm Square announced it had agreed to buy the Australian buy now, pay later giant.
MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.05% higher.
Looking ahead, the Caixin/Markit manufacturing Purchasing Managers’ Index for July is set to be out at 9:45 a.m. HK/SIN on Monday.
China’s official manufacturing PMI released over the weekend showed factory activity growth slowing in July, with the figure for the month coming in at 50.4 versus June’s reading of 50.9.
PMI readings above 50 represent expansion, while those below that level signal contraction. PMI readings are sequential and represent month-on-month expansion or contractions.
The Covid situation in the region may also weigh on investor sentiment. More areas in Japan entered a Covid-19 state of emergency on Monday due to a spike in virus cases, according to local news agency Kyodo News.
Meanwhile, Chinese state media reported that governments at various levels across the country have taken virus containment measures following a resurgence in infections that reportedly started in the city of Nanjing.
Reference: CNBC
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