Asian shares rebound after China's factory sector surprised markets
Asian shares recovered on Tuesday while commodities won a break from recent selling pressure after the information that China's massive factory sector outwent the market's bleak expectations.
The Shanghai Composite Index added 0.9 percent and the CSI300 of the leading Shanghai and Shenzhen A-share listings bounced 0.8 percent.
Australia's main index swung smartly higher to be up 1 percent, while MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.2 percent. Japanese markets were shut for a holiday.
The HSBC flash reading on manufacturing (PMI) for September rose to 50.5, from 50.2 in August and confounding forecasts for a dip to 50.0.
The market had been braced for something even worse and the relief helped Chinese stocks move into the black and the Australian dollar hop higher. The Asian giant is Australia's single biggest export market and investors often use the currency as a liquid proxy for China plays.
"After the dismal industrial production print for August, financial markets were increasingly of the view that China is slowing at a more rapid pace than desired, so today’s print provides a welcome offset," said Annette Beacher, head of Asia-Pacific research at TD Securities.
In Europe, financial spreadbetters expected only minor early moves for the FTSE 100, DAX and CAC 40.
Hindering sentiment was news the United States and partner nations were carrying out the first air strikes against Islamic State targets in Syria, a far more complicated front in the battle against militants.
Shares had begun badly after Wall Street took a dip overnight. The Dow had ended Monday down 0.62 percent, while the S&P 500 lost 0.8 percent and the Nasdaq 1.14 percent.
The plunge in the S&P was the biggest one-day decline since early August and was caused in part by a soft reading on U.S. existing home sales which hit shares in building companies.
