Investing.com - Asian shares gained on Friday with regional manufacturing figures aiding sentiment and the market poised for nonfarm payroll data from the U.S. to see get a better sense of the next likely Fed policy move.
The Shanghai Composite rose 0.57%, while the Hang Seng index gained 0.31%. In China, the Caixin manufacturing PMI for August jumped to 51.6, compared with a reading of 50.9 seen. elsewhere in the region,
Elsewhere, the Nikkei 225 edged up 0.02% and the S&P/ASX 200 rose 0.12%. The AIG manufacturing index from Australia for August soared to 59.8, compared with the July reading at 56.0 and the Japan manufacturing PMI for August came in at 52.2, a dip below 52.8 expected.
Several markets such as Singapore, Indonesia and Malaysia were shut for the Eid holiday.
Overnight, the Dow Jones Industrial Average closed higher at 21,948. The S&P 500 closed 0.57% higher while the Nasdaq Composite closed at 6428.66, up 0.95%.
Overnight, U.S. stocks closed markedly higher Thursday, as economic data showing the pace of inflation continued to stutter in July dented rate expectations while a rebound in energy lifted sentiment on the broader market.
In what was a busy day on the economic calendar investors had to content with a slew of economic reports offering a mixed signal on the strength of the U.S. economy.
The trend of slowing sales of US homes continued in July as tight supply of housing weighed on the pace of new listings available for sale.
Pending home sales slid 0.8% in July from the previous month when they rose 1.3%, the National Association of Relators said on Thursday. That missed economists’ expectations for a 0.5% rise.
Meanwhile, consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased 0.3%, the Commerce Department said on Thursday, falling short of expectations of a 0.4% increase.
Better-than-expected initial jobs claims data pointed to continuing US labor market strength while the pace of inflation remained subdued, increasing at its slowest pace in nearly two-years.
Initial claims for state unemployment benefits rose 1,000 to a seasonally adjusted 235,000 for the week ended Aug. 25, the Labor Department said. That beat economists’ forecasts of a 2,000 increase.
In the 12 months through July, the core PCE price index increased 1.4% after advancing 1.5% in June. That was the smallest year-on-year increase since December 2015.
The slew of economic reports comes ahead nonfarm payrolls data due Friday.
On the political front, U.S. Treasury Secretary Steven Mnuchin raised investor hopes of tax-reform being introduced sooner rather than later, after he said on Thursday that President Donald Trump's administration has a detailed plan on tax reform and is on track to implement it by year-end.