Asian stock markets advanced across the board Tuesday after the likelihood of an imminent, U.S.-led attack against Syria faded and manufacturing rebounded in China.
China’s stocks rose to a 10-week high after Premier Li Keqiang said he’s confident the country will achieve this year’s economic goals and Goldman Sachs Group Inc. boosted its forecast for the nation’s expansion in 2013.
Japan's Nikkei 225 index jumped 2.5 percent to 13,917.64. South Korea's Kospi rose 0.7 percent to 1,936.86. Australia's S&P ASX/200 added 0.2 percent to 5,198.90. Hong Kong's Hang Seng advanced 1 percent to 22,384.67.
The Shanghai Composite Index (SHCOMP) added 0.5 percent to 2,109.46 at 10:25 a.m., with a gauge of 30-day volatility falling to the lowest level since June 7. The Shanghai index rallied 5.3 percent last month, the biggest gain among benchmark indexes in Asia, as reports ranging from industrial production to money supply signaled the economy is stabilizing. An official report released over the weekend showed a gauge of manufacturing climbing to a 16-month high in August.
The HSBC purchasing managers' index rose to 50.1 points in August, a level that indicates expansion as output and new orders edged up slightly and order backlogs rose at the fastest pace in two years. The official China Federation of Logistics and Purchasing PMI rose to 51.0 from July's 50.3, which was the highest level and biggest increase this year.
Li’s Confidence
Premier Li said confidence is increasing as recent data showed that employment and prices are stable and market expectations have “apparently” improved. Li pointed to signs China will meet its target for 7.5 percent growth.
Goldman Sachs raised its forecast for China’s economic growth this year to 7.6 percent from 7.4 percent, saying forward indicators picked up in the last few months amid improving global demand.
The CSI 300 Index rose 0.7 percent to 2,337.25. The Hang Seng China Enterprises Index (HSCEI) advanced 1.1 percent.
Trading volumes in the Shanghai index were 50 percent higher than the 30-day average for this time of day, according to data compiled by Bloomberg. It’s valued at 8.4 times its projected 12-month earnings, compared with the five-year average of 12.6 times, according to data compiled by Bloomberg.