Asian share markets began the new month with a bang on Tuesday, buoyed by the prospect of a COVID19 vaccine fueling a global economic recovery, buoyant Chinese factory activity and expectations of continuing fiscal and monetary support.
MSCIs broadest index of AsiaPacific shares outside Japan added 1.08 after closing the month 9 higher, the best November since 2001.
Chinas bluechip CSI300 index jumped to be 1.56 higher on Tuesday, after a business survey showed on Tuesday activity in Chinas factory sector accelerated at the fastest pace in a decade in November.
That was one of the strongest readings weve had for many, many, many years in China, indeed, supporting the broader economic recovery story for the region, said John Woods, Asia Pacific Chief Investment Officer at Credit Suisses Private Bank.
Where the China PMI goes, the MSCI Asia exJapan follows, so we would expect to see further capital appreciation on the strong growth story in China.
Japans Nikkei was up 1.34 while South Korea was up 1.5. Australias SPASX 200 was 1 higher after Australias central bank said the countrys economy would need fiscal and monetary support for some time while noting the run of better news.
What we are seeing today is that upward trend reasserting itself, given the positive news on the vaccine front, Chinas growth picking up, and the tremendous faith in the ability of central banks to keep the markets afloat, said Stephen Miller, market strategist for GSFM Funds Management….