Asian stock markets extend gains as China manufacturing grows albeit at slower pace

Asian stock markets gain for 2nd day

HONG KONG — Asian stock markets advanced Monday after China said manufacturing grew at a slower pace last month, easing worries the government would accelerate its measures to cool the world’s third-largest economy.

Every major market was higher as the region posted its second day of gains. Crude oil prices climbed to near $80 a barrel, and the dollar strengthened against the yen and the euro.

China’s said its purchasing managers index, a survey of manufacturers, indicated manufacturing activity expanded in February but at a lower rate than the previous month. The slower growth came as the government steps up efforts to curb overcapacity and inflation amid a booming economy by preventing excessive bank lending.

Analysts said the slower pace of manufacturing helped calm investor concerns Beijing would soon introduce aggressive new measures to put the brakes on the economy.

“It’s a good sign. It suggests the economic activity is more sustainable, so this eases the fears of more control policies coming out in the short term,” said Linus Yip, a strategist at First Shanghai Securities in Hong Kong.

In Japan, the Nikkei 225 stock average rose 46.03 points, or 0.5 percent, to 10,172.06.

In greater China, Hong Kong’s Hang Seng benchmark jumped 411.63, or 2 percent, to 21,020.33 and Shanghai’s market was up 35.09, or 1.2 percent, at 3,087.84.

Elsewhere, Singapore’s market rose 0.8 percent and Taiwan’s index climbed 1.9 percent.

Markets in South Korea, India and Thailand were closed.

In oil, the benchmark contract rose 29 cents to $79.94 after adding $1.49 on Friday.

In currencies, the dollar rose to 89.25 yen from 88.84 yen. The euro was lower at $1.3610 from $1.3623.

Wall Street futures suggested U.S. stock would start the week on a postive note. S&P futures were up 6.4, or 0.6 percent, at 1,109.80.

Friday in the U.S., markets eked out a small gain.

The Dow rose 4.23, or less than 0.1 percent, to 10,325.26. It fell 0.7 percent for the week but rose 2.6 percent for the month.

The broader S&P 500 index rose 1.55, or 0.1 percent, to 1,104.49. It fell 0.4 percent for the week and climbed 2.9 percent in February.