SINGAPORE – Stocks in Asia-Pacific traded higher on Monday, as data releases showed that growth in China’s manufacturing activity slowed in February.
In Japan, the Nikkei 225 rose 2.36% in morning trading as the index tried to recover from the fall of about 4% on Friday. The Topix index gained 1.7%.
Shares in mainland China were higher, as the Shanghai compound gained 0.89%, while the Shenzhen component jumped 2.03%. Hong Kong’s Hang Seng index advanced 1.44%.
Stocks in Australia rose as the S & P / ASX 200 gained 1.44%.
MSCI’s broader Asia-Pacific stock index outside of Japan traded 0.98% higher.
South Korean markets are closed on Monday for holidays.
China manufacturer PMI
China’s official manufacturing purchasing managers ’index (PMI) for February reached 50.6 over the weekend, according to data released by the country’s National Statistics Office.
This was lower than the January 51.3 reading, but still above the 50 level that separates expansion from contraction.
A private survey released on Monday also showed China’s manufacturing activity in February growing at a slower pace.
Caixin / Markit’s Manufacturing Purchasing Managers’ Index (PMI) reached 50.9, down from 51.5 in January.
Levels above 50 in PMI readings represent an expansion, while those below that mean contraction. PMI readings are sequential and show a monthly expansion or contraction.
Bond yields are falling
Movements in the Asia-Pacific markets occurred as bond yields fell.
The yield on the 10-year Treasury note fell to 1.833%, to the last transaction, to 1.4169%. Prices move inversely to yields.
In Asia-Pacific, the ten-year Australian bond yield fell to 1.652%, after seeing levels above 1.8% last week. The yield on ten-year Japanese government bonds also declined to 0.155%.
Oil prices jump
Oil prices were higher in the morning of business hours in Asia, with an international benchmark future on Brent crude at 1.92%, to $ 65.66 per barrel. US crude oil futures rose 1.9% to $ 62.67 a barrel.
The US dollar index, which tracks the greenback against a basket of its peers, stood at 90,812 after recovering from levels below 90 in late February.
The Japanese yen was trading at 106.60 per dollar, lower than levels below 105.6 against the green dollar seen last week. The Australian dollar changed hands at $ 0.7752, after falling from levels above $ 0.792 last week.
Subscribe and CNBC PRO for exclusive information and analysis and live scheduling of weekdays from around the world.