Asian Equities Higher after China PMI

Most Asian stocks rose, after the regional benchmark index capped its first monthly drop in four months, as investors weighed whether Chinese policy makers will add stimulus after reports showing slower manufacturing growth.

The MSCI Asia Pacific Index (MXAP) added 0.2 percent to 148.19 as of 10:55 a.m. in Tokyo, with five shares advancing for every three that fell. The gauge dropped 0.6 percent in August, the first monthly loss since April. European Union governments agreed to impose new sanctions on Russia if the conflict in Ukraine worsens. Two gauges of China’s manufacturing industry missed estimates.

“The market seems to be treating bad news as good news,” Nader Naeimi, who helps oversee about $131 billion as Sydney-based head of dynamic asset allocation at AMP Capital Investors Ltd. “China may introduce more stimulus as economic data weakens. What’s happening in Ukraine is unfortunate but the damage to the global economy will likely be minimal.”

Bloomberg

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