US stocks rallied as upbeat manufacturing data signalled the economy is emerging strong from its weather-induced setbacks. The Dow ticked 0.5% higher, while the S&P 500 added 0.7% and the Nasdaq tacked on 1.6%.
National manufacturing activity accelerated in March for two straight months, supported by stronger new orders, the Institute for Supply Management said. A separate report from Markit showed the purchasing managers index (PMI) falling to 55.5 in the same month, although it indicated the pace of hiring remains positive. Meanwhile, construction spending barely rose in February, rising just 0.1% as harsh winter weather hindered private residential projects.
Europe shares were lifted by positive data from China, the bloc’s third largest trade partner. Meanwhile, the region’s factory activity slowed in February, dragged by a sluggish Germany. But France PMI returned to growth, reaching its highest since June 2011. British manufacturing grew at its slowest in eight months in March as export demand fell to a 10-month low.
Japan stocks finished 0.2% lower on profit-taking in retail names as the first sales tax hike in 17 years kicked in. The Bank of Japan’s Tankan survey, a gauge for large manufacturers’ sentiment, rose in the three months ending March. However, the June Tankan survey is expected to fall nine points, more than the eight point decline seen in 1997 when Japan last raised its sales tax to 5%.
