ASIA MARKETS: Asia Stocks Rise After Official China Factory Data

By V. Phani Kumar, MarketWatch

HONG KONG (MarketWatch) -- Asian stocks rose Monday to begin September on a positive note, with better-than-expected Chinese manufacturing data and a weakened yen helping the advance.

Japan's Nikkei Stock Average gained 1% and Australia's S&P/ASX 200 rose 0.8%, while South Korea's Kospi climbed 0.3%, shaking off the tentativeness witnessed in early trade.

The broad advances came with U.S. stock markets closed Monday for Labor Day holiday, and after official Chinese data released over the weekend showed the manufacturing Purchasing Managers' Index for August rose to 51.0 from 50.3 in July.

A reading above 50 indicates an expansion in activity. HSBC will later on Monday separately release the final reading of its own survey on conditions at Chinese factories last month.

"The rise in the official manufacturing PMI for August suggests that cyclical improvement in industry continued in August. It likely reflects a consolidation of the improvement in export momentum and the first impact of some measures taken recently to support growth," said Louis Kuijs, a China economist at the Royal Bank of Scotland.

The gains in Asia follow a drop on Wall Street Friday, and amid lingering worries the U.S. may lead a military intervention in Syria, even as President Barack Obama is seeking congressional support for such a move.

The advance in Tokyo came as the U.S. dollar (USDJPY) rose to trade in the mid Yen98-level, providing a lift to several internationally exposed corporations.

Shares of Mitsubishi Electric Corp. (MIELY) gained 3.1%, pharmaceutical major Daiichi Sankyo Co. (4568.TO) added 3%, Japan Tobacco Inc. (JAPAF) gained 1.8% and Isuzu Motors Ltd. (ISUZY) advanced 1.8%.

Meanwhile, major miners advanced in Sydney after the Chinese PMI data. BHP Billiton Ltd. (BHP) rose 1% and Fortescue Metals Group Ltd. (FSUMY) climbed 2.8%, although gold miners underperformed after the precious metal's prices dropped under the $1,400-an-ounce level.

Shares of Westpac Banking Corp. (WBK) advanced 1.5% and Commonwealth Bank of Australia (CBAUY) gained 0.6% ahead of an expected decision on Tuesday by Australia's central bank rate to hold the benchmark interest rate at 2.5%.

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