Some long overdue and long-awaited good news out of Asia today with data from both China and Japan printing strong.
The Aussie dollar jumped all the way to 94.4 cents on the news, Aussie stocks are up by 0.6% (big gains for miners such as RIO +2.7%, BHP +1.4%) and iron ore future reverted some 3% higher sending Fortescue (FMG) up another 24 cents or 5.7% as its rollercoaster ride continues.
Japan's flash manufacturing reading printed at 51.1 - expansion, for the first time in 3 months - while China's HSBC manufacturing PMI beat expectations coming in at 50.8 and well above May's 49.4 reading as orders surge.
Expansion for China manufacturing and its best result in 7 months.
"Asian stocks and the Australian dollar rose on Monday as upbeat news from China's factory sector and fresh highs on Wall Street fueled appetite for riskier assets, while crude oil held near nine-month highs as fighting in Iraq intensified.
MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.7 percent by mid-morning. Tokyo's Nikkei rose 0.4 percent, shaking off early weakness.
The MSCI index hit intraday highs after the June HSBC/Markit Flash China PMI showed China's factory sector activity expanded for the first time in six months, offering new signs the economy is stabilising thanks to Beijing's measures to shore up growth.
"This month's improvement is consistent with data suggesting that the authorities' mini-stimulus are filtering through to the real economy," said Qu Hongbin, chief economist for China at HSBC, referring to a series of measures announced by the government in recent months to spur activity."