Asian stocks were mostly higher on Monday with the regional index rebounding from its biggest two-week decline since June. The yen fell against major peers as investors brushed off weak Chinese manufacturing activity.
Copper erased last week’s gain while gold and silver retreated as the preliminary Chinese manufacturing gauge unexpectedly fell.
The MSCI Asia Pacific Index added 0.9 percent by 12:55 p.m. in Tokyo as a measure of Chinese companies in Hong Kong increased a second day after entering a bear market last week. Standard & Poor’s 500 Index futures climbed 0.1 percent. The yen dropped 0.2 percent to the dollar. Copper slid 0.4 percent after capping its first weekly advance since Feb. 21. Gold fell for the fifth time in six days and silver retreated 0.5 percent. Corn futures gained 0.7 percent.
A preliminary purchasing managers’ index from HSBC Holdings Plc and Markit Economics was at 48.1, from a final reading of 48.5 in February, signaling a third month of contraction and coming in below the 48.7 median estimate of 22 economists. China’s cabinet last week said it would accelerate already-decided growth initiatives.
The CSI 300 Index (SHSZ300) of stocks in Shanghai and Shenzhen increased 0.4 percent after jumping 3.4 percent on Friday, the most since September, amid speculation that China would allow some companies to use preferred shares to raise funds.
Hong Kong’s Hang Seng Index added 1.1 percent amid volume that was about twice the 30-day average for the time of day. The Hang Seng China Enterprises Index of Chinese companies listed in the city increased 2 percent after a 2.4 percent advance on March 21.
The Australian dollar, a liquid proxy for China, fell around a quarter of a U.S. cent after the disappointing reading.
The yuan suffered its biggest weekly drop against the dollar last week as policymakers try to flush out hot money from the market while Japan's Nikkei share average gained 1.3 percent.
On Wall Street, stocks fell on Friday due to caution over tensions in Ukraine, with the S&P 500 erasing gains after rising to an intraday record. The dollar rose 0.2 percent to 102.495 yen, with the Japanese currency continuing to draw safe-haven bids as investors continued to fret over the crisis in Ukraine.
Currency markets were also keeping an eye on emergency talks between leaders of the Group of Seven leading nations scheduled to take place later in the session at The Hague, where the G7 will probably discuss how to exert further pressure on Russia and at what potential cost.