Passersby are reflected on a stock quotation board at a brokerage in Tokyo, Japan, September 29, 2015. Reuters/Issei Kato
Asian shares were solidly higher on Tuesday, as investors latched on to tentative signs of stabilisation in China even as twin factory surveys highlighted the fragile state of the world’s second-largest economy.
Financial spreadbetters predicted the buoyant mood to carry over to European trading, with Britain’s FTSE 100 .FTSE seen opening as much as 0.5 percent higher, Germany’s DAX .GDAXI 0.4 percent, and France’s CAC 40 .FCHI 0.5 percent.
“European indices are set to start December on a positive note,” Farbod Mimeh, a junior dealer at Capital Spreads in London, said in a note to clients.
“Asian shares climbed higher after the release of mixed Chinese PMI data hinting that government support measures may finally have served their purpose as the economy shows signs of levelling out,” Mimeh said.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS extended early gains and was up 1.8 percent, while Japan’s Nikkei .N225 ended up 1.3 percent, closing above the 20,000 level for the first time since August.
Wall Street lost ground overnight, though major U.S. indexes still gained for the second straight month and U.S. stock futures ESc1 added 0.6 percent in late Asian trade.
China’s official Purchasing Managers’ Index (PMI) stood at a three-year low of 49.6 in November, compared with the previous month’s reading of 49.8 and below both forecasts for a reading of 49.8 as well as the…