Shares in China gained 0.72 per cent while Hong Kong stocks jumped 1.18 per cent, undeterred by the Chinese parliament’s passage of a security law that will increase Beijing’s control over the former British colony.
The Nikkei rose 2.0 per cent, shrugging off a larger-than-expected decline in Japanese industrial production.
Overall, however, Asian shares are still on course for a 7.0 per cent decline in the first half of this year, underscoring the challenges facing investors as global infections continue to rise in a blow to hopes of a quick recovery.
“Overnight moves in markets were not large but one does get the distinct impression that markets have got it both ways, with equities rallying on rebounding data and bonds rallying on dismal COVID-19 news,” ANZ Research analyst Rahul Khare said.
On Monday, the Dow Jones Industrial Average rose 2.32 per cent, the S&P 500 gained 1.47 per cent and the Nasdaq Composite added 1.2 per cent.
China’s official purchasing managers’ index (PMI) showed factory activity in the world’s second-largest economy grew for a fourth straight month in June. China’s services sector PMI also expanded at a faster pace compared with the previous month.