Asian shares extend gains on manufacturing data

Asian markets rose for a fourth straight day Thursday following another gain on Wall Street thanks to upbeat US data, while Chinese manufacturing figures also provided some support. The rises, which follow one of the worst ever Augusts for shares, came as market players grow a little more confident that the global economy is in a better state than previously feared. Tokyo gained 1.39 percent by the break, Hong Kong was 1.76 percent higher, Sydney added 0.58 percent and Seoul jumped 1.63 percent while Shanghai rose 0.22 percent. Regional stock markets continued their rebound as dealers digested better-than-expected US data showing manufacturing in the US industrial heartland had picked up slightly. The Institute of Supply Management-Chicago reported that its purchasing managers' index came in at 56.5 in August, above analysts' forecasts. Any number greater than 50 indicates expansion. The figures sent Wall Street higher, with the Dow up 0.46 percent, the S&P 500 rising 0.49 percent and the Nasdaq gaining 0.13 percent. Separately, payrolls firm ADP said the US private sector created 91,000 jobs in August, which fell short of expectations. In China the official purchasing managers' index for August rose to 50.9 from 50.7 in July. However, while the news will come as some relief that the world's number two economy is less likely heading for a hard landing, it also showed that manufacturers' costs continued to rise. The increase in costs will add further pressure on the government as it struggles to rein in inflation, which in July hit a three-year high of 6.5 percent. "The key focus for equity markets is, what is the state of the global recovery," said CMC Markets chief market strategist Michael McCarthy in Australia. "People are slowly coming to the view that while it's not as strong as expected, we are not heading for recession," he told Dow Jones Newswires. On currency markets the euro bought $1.4370 from $1.4374 late Wednesday in New York and 110.80 yen from 110.22. The dollar was at 77.13 yen from 76.62. The brighter outlook also provided some support for oil. New York's main contract, light sweet crude for delivery in October, rose 16 cents to $88.97 per barrel. Brent North Sea crude for October delivery gained five cents to $114.90. Gold opened at $1,821.00-$1,822.00 an ounce in Hong Kong, down from Wednesday's close of $1,827.50-$1,828.50.