Stocks in Asia Pacific set to rise ahead of China manufacturing data release

Stocks in Asia Pacific were set to open higher on Tuesday as investors await the release of China’s official manufacturing Purchasing Manager’s Index.

Futures pointed to a higher open for stocks in Japan. The Nikkei futures contract in Chicago was at 22,415 while its counterpart in Osaka was at 22,340. That compared against the Nikkei 225’s last close at 21,995.04 after its more than 2% slide on Monday.

Shares in Australia were also set for a positive start, with the SPI futures contract at 5,874, as compared to the S&P/ASX 200’s last close at 5,815.

Investors will await the release of China’s official manufacturing PMI for June, set to be released around 9:00 a.m. HK/SIN on Tuesday. Economists in a Reuters poll have a median forecast of 50.4 the data print, above the 50 level that indicates expansion in activity.

Developments surrounding the coronavirus pandemic will also continue to be watched, with World Health Organization chief Tedros Adhanom Ghebreyesu warning Monday that “the worst is yet to come.”

“Although many countries have made some progress, globally, the pandemic is actually speeding up,” he said during a virtual news conference from the agency’s Geneva headquarters. “We all want this to be over. We all want to get on with our lives, but the hard reality is that this is not even close to being over.” 

Overnight stateside, stocks on Wall Street jumped. The Dow Jones Industrial Average closed 580.25 points higher, or 2.3%, at 25,595.80. The S&P 500 surged 1.5% to finish its trading day at 3,053.24 while the Nasdaq Composite gained 1.2% to close at 9,874.15.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 97.536 after earlier trading below 97.5.

The Japanese yen traded at 107.57 per dollar after weakening sharply from levels below 107.5 yesterday. The Australian dollar changed hands at $0.6873 after dipping to levels around $0.685 yesterday.

What’s on tap:

  • China: Official manufacturing Purchasing Manager’s Index at 9:00 a.m. HK/SIN

— CNBC’s William Feuer and Jasmine Kim contributed to this report.

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