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Asian Shares Gain With Nikkei 225 Up 1.42%, Regional PMIs Noted

Published 11/01/2017, 12:03 AM
Updated 11/01/2017, 12:03 AM
© Reuters.  Asian shares gain

Investing.com - Asian shares posted solid gains on Wednesday as regional PMIs came in mixed with sentiment still upbeat as earnings season regionally gets attention.

The Nikkei 225 rose 1.42%, while Australia's S&P/ASX 200 gained 0.46%. In Creater China, the Shanghai Composite edged up 0.18% and the Hang Seng index increased 0.58%.

Sony on Tuesday revised upwards its full-year profit for the fiscal year ending March 31, 2018. The Japanese conglomerate said it expects full-year operating income to come in at 630 billion yen ($5.5 billion), substantially above a forecast of 585.8 billion yen from Reuters.

The Caixin/Markit manufacturing PMI for October came in at 51.0 as and unchanged from September, according to data released on Wednesday. The release follows China's official manufacturing PMI for October that came in at 51.6 — below expectations.

In Australia, the AIG Manufacturing index came in at 51.1, compared with a previous reading of 54.2. As well, the Japan's manufacturing PMI rose to 62.8, compared with a reading of 52.5 seen.

Overnight, investor appetite for riskier assets returned on Tuesday following signs of underlying strength in the U.S. economy after data showed consumer confidence rose to a nearly 17-year high ahead of the Federal Reserve’s interest rate decision due Wednesday.

The Dow Jones Industrial Average closed higher at 23,377.31. The S&P 500 closed 0.09% higher while the Nasdaq Composite closed at 6727.67, up 0.43%.

With the earnings season well underway, investors cheered better-than-expected earnings from both Mastercard Inc (NYSE:NYSE:MA) and Pfizer (NYSE:NYSE:PFE), as the latter posted an increase in revenue for the first time in four quarters.

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Pfizer's total revenue rose 1% to $13.17 billion, in-line with Wall Street estimates but tightened its revenue forecast to $52.4 billion to $53.1 billion, from $52 billion to $54 billion.

Despite beating earnings estimates, Under Armour Inc A (NYSE:NYSE:UAA) slumped more than 20% as the sports apparel maker cut its revenue growth outlook for the year amid intense competition in North America from both Nike (NYSE:NYSE:NKE) and Adidas (DE:DE:ADSGN).

The mixed batch of earnings came as economic data beat expectations, raising expectations that U.S. economic growth remains on track for a solid final quarter of the year.

The Conference Board’s consumer confidence gauge rose to 125.9 in October from 119.8 in September, beating economists’ forecast for a reading of 121.

Consumer sentiment is a leading indicator of consumer spending, which plays a major role in overall economic activity.

The Chicago Purchasing Managers' Index (PMI) jumped to 66.2, above the September reading of 65.2. That topped expectations for a reading of 61. As a leading indicator of the U.S. economy, the Chicago PMI helps economists measure business activity and new orders.

Traders shifted attention to monetary policy later in the session as the Federal Open Committee’s two day meeting got underway on Tuesday, with a decision on interest rates – widely expected to remain unchanged – set to be announced on Wednesday.

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