Asian Shares Rise On Recovery Hopes

Asian stocks rose broadly on Monday after regional business surveys showed Asian factory activity expanded moderately in December, thanks to robust demand in regional giant China.

Chinese shares rose as the latest survey from Caixin revealed the manufacturing sector in China continued to expand in December, albeit at a slower pace. The benchmark Shanghai Composite index climbed 29.89 points, or 0.86 percent, to 3,502.96.

The manufacturing PMI score stood at 53.0 - missing expectations for a score of 54.8 and down from 54.9 in November. An official gauge of factory activity, focusing more on larger and state-owned firms, also moderated but remained strong.

Hong Kong's Hang Seng index ended up 241.68 points, or 0.89 percent, at 27,472.81. Shares of China's state-owned telecommunications companies declined after the New York Stock Exchange said it would delist three major Chinese telecoms.

Japanese markets bucked the regional trend to end notably lower after Prime Minister Yoshihide Suga said he was considering declaring a state of emergency in the greater Tokyo area to curb the spread of the coronavirus.

A stronger yen also fueled selling pressure. The Nikkei average dropped 185.79 points, or 0.68 percent, to 27,258.38, while the broader Topix index fell 10.09 points, or 0.56 percent, to 1,794.59.

Japan Airlines tumbled 3.5 percent and ANA Holdings lost 2 percent on concerns over the impact of the expected state of emergency. Nissan Motor gave up 1.3 percent after a report that it plans to outsource sales of its cars in Europe to alliance partner Renault.

In economic releases, a survey showed Japan's factory activity stabilized for the first time in two years in December.

Australian markets ended sharply higher after the country's most populous state New South Wales reported zero new locally acquired Covid-19 cases for the first time in nearly three weeks.

The benchmark S&P/ASX 200 index climbed 97.10 points, or 1.47 percent, to 6,684.20, making its best day since Nov. 24. The broader All Ordinaries index ended up 103.10 points, or 1.50 percent, at 6,953.70.

Strong iron ore prices helped lift miners, with heavyweights BHP and Rio Tinto rising 1.5 percent and 1.3 percent, respectively. Smaller rival Fortescue Metals Group jumped as much as 5.9 percent.

Gold miners Evolution Mining, Newcrest and Northern Star Resources soared 5-6 percent as the precious metal pushed above $1,900 an ounce to hit the highest level in almost two months, aided by a weaker dollar amid prospects of tougher coronavirus control measures in Japan and the U.K.

Business support services provider Link Administration Holdings slumped 13.5 percent after U.S.-based SS&C Technology Holdings shelved it's A$3.02 billion ($2.32 billion) buyout offer.

The manufacturing sector in Australia continued to expand in December, albeit at a slightly slower pace, the latest survey from Markit Economics revealed with a manufacturing PMI score of 55.7, down marginally from 55.8 in November.

New Zealand markets were closed for a public holiday. Seoul stocks began the New Year on an upbeat note as the country expanded a ban on private gatherings and said it is reviewing AstraZeneca's request for approval of its coronavirus vaccine. Encouraging manufacturing and exports data also boosted hopes of a swifter recovery from the pandemic.

The benchmark Kospi ended up 70.98 points, or 2.47 percent, at 2,944.45, logging the sharpest daily gain since mid-June and extending gains to a sixth straight session.

Chip giant Samsung Electronics rose 2.5 percent and SK Hynix surged 6.3 percent, while Hyundai Motor Co, the nation's biggest carmaker, soared 8.1 percent on hopes for electric vehicle (EV) boost.

The manufacturing sector in South Korea continued to expand in December at a steady pace, the latest survey from market Economics revealed with a manufacturing PMI score of 52.9 - unchanged from the November reading.

Manufacturers indicated a quicker expansion in purchasing activity, with the respective seasonally adjusted Index reaching its highest point since April 2010 as a result of increasing orders.

Exports expanded at their fastest pace in 26 months in December on robust chip demand and improved global demand, raising hopes for a recovery.

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