Investing.com - Asian shares gained on Tuesday with sentiment bolstered by better-than-expected Caixin July manufacturing PMI figures.
Japan's benchmark Nikkei 225 index rose 0.22%. In Australia, the S&P/ASX 200 gained 0.77 percent, driven by strength in its energy sub-index, which was up 1.9 percent. The Reserve Bank of Australia held interest rates steady at a record low 1.5% as expected on Tuesday, citing the potential impact of a stronger Aussie dollar.
Hong Kong's Hang Seng Index advanced 0.73%. The Shanghai Composite was higher by 0.41%. The Caixin manufacturing PMI came in at 51.1 on Tuesday, a better than expected figure that the 50.4 seen and aiding markets higher. On Monday. the CFLP manufacturing PMI reached 51.4, a trade below expected, but still in expansion, while a 54.5 for the services PMI also was seen as steady. Any level above 50 denotes expansion.
"Operating conditions in the manufacturing sector improved further in July, suggesting the economy's growth momentum will be sustained," Zhengsheng Zhong, an economist at CEBM Group, said in a statement accompanying Tuesday's release. "That said, it's unlikely that financial regulatory tightening will be relaxed."
Overnight, Wall Street closed at record highs on Monday, as market participants continued to expect upbeat corporate earnings would underpin a move higher in market averages offsetting the recent slump in tech stocks.
U.S. stocks made a mixed start to the week, as sentiment on corporates earnings remained bullish, after data from Factset on Friday showed 73% of the S&P 500 companies that had reported earnings as of last week, beat estimates on both the top and bottom lines.
Some analysts suggested, however, that the recent bull run in the main U.S. indexes could come under pressure, as corporate earnings in the second half of the year may struggle match expectations.
"We're probably seeing peak earnings," said Ed Keon, managing director and portfolio manager at QMA, a multi-asset manager in Newark, New Jersey. "I think we'll be a little slower in the second half."
Meanwhile on the economic data front, investors had to contend with mixed economic reports pointing to a possible weakness in manufacturing activeness while housing data topped forecasts.
The Chicago business barometer, a closely-watched indicator by the Institute for Supply Management (ISM) slipped to 58.9 in July from a three-year high of 65.7 in June, MNI indicators showed on Monday.
Any reading over 50 indicates improving conditions.
In a separate report, the National Association of Realtors said on Monday, pending home sales, or signed contracts to buy previously owned homes, rose 1.5% in June from the previous month.
The pair of mixed reports comes ahead of an eagerly-awaited update on the strength of the U.S. labor market, with nonfarm payroll slated for Friday.
The Dow Jones Industrial Average closed higher at 21,891.12. The S&P 500 closed 0.07% higher while the Nasdaq Composite closed at 6348.12, down 0.42%.