In today’s trading, Asian markets positively began the second half of the year as investors assessed mixed Chinese PMI data. Confidence among large Japanese manufacturing firms also rose to a two-year high in Q2, signaling an improving economic outlook. 

Japan’s Nikkei 225 was up by 0.1% to 39,631.06 following a quarterly survey by the Bank of Japan, known as the “tankan,” which indicated a modest improvement in confidence among its largest manufacturers for April-June.

The consumer confidence index in Japan rose to 36.4 in June 2024 from May’s six-month low of 36.2, but it fell short of market forecasts of 36.5. The au Jibun Bank Japan Manufacturing PMI was revised to 50 in June 2024 from a preliminary reading of 50.1 and 50.4 in May. 

However, the government revised its estimate for first-quarter growth downward, to an annual rate of minus 2.9% from the previous figures of -1.8%

Mainland Chinese stocks struggle to gain traction as investors react to mixed business activity reports. The Shanghai Composite rose 0.9% to 2,994.73 after a weekend survey of factory purchasing managers revealed that conditions remained in contraction for the second consecutive month. 

China’s official report indicated a second consecutive month of manufacturing contraction in June, with a PMI of 49.5. The services sector remained in expansion but slowed to a six-month low. 

In contrast, a private survey revealed that the Caixin Manufacturing PMI in June increased to 51.8, its highest level since May 2021, surpassing market forecasts. 

Hong Kong markets were closed for a holiday. In Australia, the S&P/ASX200 went down by 0.2% to 7,750.70 while South Korea’s Kospi went up by 0.2% to 2,804.31 following a private-sector survey indicating that South Kore’as factory activity reached its highest level since April 2022.