Asian stocks manage to climb

BANGKOK (AP) – Asian stock markets were mostly higher yesterday as speculation that lukewarm US economic indicators would keep the Federal Reserve from ending its stimulus program early offset pessimism about China’s economy.

Tokyo’s Nikkei 225, the region’s heavyweight index, jumped one percent to 13,994.35. Australia’s S&P/ASX 200 was up 2.2 percent at 4,814.70 after the country’s central bank left interest rates unchanged and said the Australian dollar is likely to continue falling, easing pressure on the economy.

Singapore’s Straits Times Index rose 1.1 percent to 3,174.61. Seoul’s Kospi was almost unchanged at 1,855.59

In China, the Shanghai Composite Index reversed early losses to rise 0.1 percent to 1,966.83 after reports on Monday that Chinese manufacturing weakened in June amid a credit crunch. Hong Kong’s Hang Seng fell by 0.1 percent to 20,787.67.

Much of the decline in Hong Kong was led by Chinese banks, which are facing central bank credit restrictions that have caused interest rates on loans by banks to other banks to sharply rise.

“The market is still worrying that the liquidity crisis in Chinese banks is not over,” said Francis Lun, chief economist of GE Oriental Financial Group.

The gains in Asian markets followed a rally on Wall Street after an ISM manufacturing survey for the US that showed a weak rebound in June thanks to new orders and higher production. The survey boosted stock markets as investors estimated it was strong enough to show the recovery is on track, but not so strong as to encourage the Federal Reserve to start ending its monetary stimulus program ahead of time.