Asian Shares Rise After Upbeat Chinese Data

Asian stocks rose broadly on Monday after the release of robust Chinese factory activity data.

However, concerns over a broader trade war capped regional gains after U.S. President-elect Donald Trump demanded a commitment from the BRICS nations on using the dollar, warning they shouldn’t move to create a new currency or endorse any other currency to replace the dollar.

“The idea that the BRICS Countries are trying to move away from the dollar while we stand by and watch is OVER,” Trump said in a post on his Truth Social network on Saturday.

He has threatened a 100 percent tariff on the bloc of nine nations if they undercut the U.S. dollar.

China’s yuan fell to its lowest level since July 24 despite impressive PMI numbers.

Gold prices fell nearly 1 percent as Trump’s tariff threat bolstered the dollar. Oil ticked higher on improved Chinese data and as Israel resumed attacks on Lebanon despite a ceasefire pact, stoking tensions in the Middle East.

China’s Shanghai Composite Index rallied 1.1 percent to 3,363.98 after a private survey showed the manufacturing sector in the country expanded at a faster pace in November, with the corresponding PMI rising to 51.5 from 50.3 in October.

Hong Kong’s Hang Seng Index climbed 0.7 percent to 19,550.29.

Japanese markets logged strong gains, led by banks and technology stocks. The Nikkei 225 Index advanced 0.8 percent to 38,513.02, while the broader Topix Index settled 1.3 percent higher at 2,714.72.

Advantest, Screen Holdings, Sumitomo Mitsui Financial, Mizuho Financial and Mitsubishi UFJ Financial climbed 2-4 percent.

Seoul stocks ended on a flat note, with the Kospi finishing marginally lower at 2,454.48 after a choppy session. Tech stocks led losses, with heavyweight Samsung Electronics falling 1.1 percent.

Australian markets ended slightly higher, with technology and consumer discretionary stocks leading gains. Myer Holdings surged 12.3 percent after Australian retail sales for October beat forecasts.

The benchmark S&P/ASX 200 Index edged up by 0.1 percent to 8,447.90, while the broader All Ordinaries index ended little changed with a positive bias at 8,705.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index closed up 0.4 percent at 13,114.68.

U.S. stocks ended Friday’s abbreviated session mostly higher following the Thanksgiving Day holiday the previous day.

The Dow rose 0.4 percent and the S&P 500 added 0.6 percent to reach new record closing highs as the year-end holiday season kicked off.

The tech-heavy Nasdaq Composite climbed 0.8 percent on the prospect of softer-than-expected U.S. curbs on chip equipment sales to China.

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