Asian Shares Rise After Trump's China Speech

Asian stocks advanced on Monday after U.S. President Donald Trump stopped short of threatening tariffs on China and data showed that China's factory activity expanded in May.

Investors shrugged off political unrest in the U.S. and worries about a resurgence of the coronavirus.

Chinese shares rallied after a private survey showed the manufacturing sector in the country moved into expansion territory in May. The Caixin manufacturing PMI score came in at 50.7 - beating expectations for a score of 49.6 and up from 49.4 in April.

The official manufacturing PMI for the month stood at 50.6, slightly below forecasts for a score of 51.0.

China's Shanghai Composite index climbed 63.08 points, or 2.21 percent, to 2,915.43, while Hong Kong's Hang Seng index jumped as much as 3.36 percent to 23,732.52.

Japanese stocks hit a three-month high on growing optimism about the phased business restart in the capital. The Nikkei average inched up 184.50 points, or 0.84 percent, to 22,062.39, the highest close since Feb. 26.

The broader Topix index closed 0.32 percent higher at 1,568.75, led by securities house, electric power and gas, and electric appliance companies.

Market heavyweights SoftBank Group and Fast Retailing rose 3.9 percent and 2.2 percent, respectively.

In economic news, the latest survey from Jibun Bank revealed that the manufacturing sector in Japan continued to contract in May, and at a faster rate, with a manufacturing PMI score of 38.4, down from 41.9 in April.

Australian markets finished notably higher as coronavirus restrictions eased across the country. The benchmark S&P/ASX 200 index climbed 63.50 points, or 1.10 percent, to 5,819.20, while the broader All Ordinaries index ended up 66.20 points, or 1.13 percent, at 5,938.40.

Stronger commodity prices helped lift miners, with BHP, Fortescue Metals Group and Rio Tinto rising 3-6 percent. Gold miners Evolution and Newcrest surged around 3 percent.

The big four banks rose between 0.2 percent and 0.9 percent ahead of the Reserve Bank of Australia interest-rate decision on Tuesday.

Shares of Vicinity Centres entered a trading halt after the retail property group said it will raise A$1.4 billion through a share sale to provide a buffer against the uncertainty arising from Covid-19 and will not pay any dividend to shareholders for the six months ending June 30.

Australia's manufacturing sector logged a sharp deterioration in operating conditions in May amid ongoing measures to contain the spread of the coronavirus, or Covid-19, survey results from IHS Markit showed today.

The Commonwealth Bank Factory Purchasing Managers' Index fell to 44.0 in May from 44.1 in April.

Seoul stocks rallied after Trump's speech on Friday lacked specifics around measures that would directly impact Hong Kong, leaving room for the possible de-escalation of tensions in the future. The benchmark Kospi jumped 35.48 points, or 1.75 percent, to 2,065.08.

Chipmaker SK Hynix rallied 2.6 percent, automaker Hyundai Motor added 2 percent and chemical maker LG Chem rose 1.4 percent. Market heavyweight Samsung Electronics rose 1 percent.

The manufacturing sector in South Korea continued to contract in May, and at a faster rate, the latest survey from IHS Markit revealed with a manufacturing PMI score of 41.3, down from 41.6 in April.

Another report showed that South Korea had a merchandise trade surplus of $0.44 billion in May - beating forecasts for a deficit of $1.1 billion following the $1.4 billion shortfall in April.

Markets in New Zealand and Indonesia were closed for public holidays.

U.S. stocks ended mostly higher on Friday after President Donald Trump made no mention of tariffs during his highly-anticipated press conference on China.

Trump ordered his administration to begin the process of eliminating special U.S. treatment for Hong Kong and also said he is terminating the U.S.' relationship with the World Health Organization, claiming China has total control of the agency.

The tech-heavy Nasdaq Composite climbed 1.3 percent and the S&P 500 added half a percent, while the Dow Jones Industrial Average slid 0.1 percent.