Asian shares rose on Monday in morning trade as telecommunication stocks led the gain and Chinese equities traded in Hong Kong headed for a bull market.
The MSCI Asia Pacific Index advanced 0.2% to 149 as of 9:55 a.m. in Hong Kong. The Hang Seng Index added 0.6% the Shanghai Composite Index climbed 1.3%.
Japan’s Topix index and South Korea’s Kospi index both added 0.4%. Australia’s S&P/ASX 200 Index and New Zealand’s NZX 50 Index both slipped 0.2%. Taiwan’s Taiex index was little changed. Singapore’s market is closed today.
Profit at industrial companies in China increased by 17.9% in June from a year earlier, after gaining 8.9% in May, data from China’s statistics bureau yesterday showed. It was the biggest advance since an 18.4% jump in September and came after a private gauge of Chinese manufacturing last week rose to an 18-month high.
In corporate news, SK Telecom Co. surged 3.6% in Seoul. NTT Docomo Inc. gained 2.1% after Nomura Holdings Inc. recommended shares of the Japanese wireless carrier.
Hitachi Chemical Co. soared 11% in Tokyo after announcing job cuts and reporting a quarterly profit.
In the US, the Federal Reserve meets 29-30 July to review monetary policy before monthly US payrolls data is released 1 August. Employers probably added 231,000 workers to nonfarm payrolls in July, after a 288,000 increase in June, according to economists’ estimates compiled by Bloomberg.