Asia equities closed higher, as investors cheered a surprise rise in China output. Manufacturing activity among larger firms rose as the official PMI edged to 50.3 in March, breaking a three-month streak of declines. It was 50.2 in February. Separate data from HSBC suggested smaller private firms were seeing weakness, with PMI falling further to 48.0, the weakest level in a year and a half. China’s SHCOMP advanced 0.7%, while Hong Kong’s Hang Seng climbed 1.3% and Taiwan’s TWSE rose 0.3%.
South Korea’s consumer inflation rose 1.3% in March, the highest in seven months. Overseas shipments expanded 5.2% on-year, while imports grew 3.6%, resulting in a USD4.2 billion of trade surplus. Officials said stronger demand for cell phones and memory chips supported export growth.
In Southeast Asia, Singapore’s STI rose 0.3% while Malaysia’s KLCI ended flat. Indonesia’s consumer inflation eased to 7.3% on-year in March, roughly in line with analyst expectations. Though exports dipped 3.0% in February from a year ago, imports plunged a more-than-expected 10%, resulting in a USD790 million surplus. Thailand’s consumer prices appreciated by 2.1% in March, marking the highest increase in nine months, lifted by rising food prices.
India equities rose 0.3%. The Reserve Bank of India held rates steady as expected widely, staying on the sidelines to observe if the country’s inflation will ease to acceptable levels after a series of policy tightening steps. RBI Governor Raghuram Rajan said the “policy stance is firmly focused on keeping the economy on a disinflationary cycle path,” adding that further tightening is unlikely in the near term.
