BANGKOK (AP) -- Asian stocks were mixed on Tuesday as speculation that lukewarm U.S. economic indicators would for now keep the Federal Reserve from ending its stimulus program partly offset pessimism linked to slowing Chinese growth.
Tokyo's Nikkei 225, the region's leading index, jumped 1.1 percent to 14,000.22 in morning trading, while Taiwan's Taiex was up 0.1 percent to 8,044.53.
Singapore's Straits Times Index rose 0.8 percent to 3,166.39.
In China, the Shanghai Composite Index fell for a second day. It was down 0.5 percent to 1,985.19 after reports on Monday that Chinese manufacturing weakened in June amid a credit crunch. Hong Kong's Hang Seng fell by 0.5 percent to 20,707.95.
Seoul's Kospi Index declined 0.1 percent to 1,853.27.
The gains in some Asian markets followed a rally on Wall Street after an ISM manufacturing survey for the U.S. 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.
The Dow Jones industrial average gained 0.4 percent to 14,974.96 by day's end, while the broader S&P 500 index rose 0.5 percent to 1,614.96 and the Nasdaq composite rose 0.9 percent to 3,434.
"This rebound in the ISM and moderate employment growth in June would leave the Fed on track to start tapering" its bond purchases in September, said Paul Dales, analyst at Capital Economics.
U.S. economic indicators have been one of the main market drivers in recent weeks as investors gauge when the Fed is likely to wind down its stimulus.
After a volatile few weeks, Fed officials are trying to calm investors' concerns about the central bank's planned reduction in monthly purchases of financial assets. Those purchases are aimed at stimulating the economy by pushing down market interest rates, and investors worry that as the economy improves, a pullback could deprive them of cheap borrowing rates.
In that vein, the U.S. monthly jobs report due Friday will get huge attention as it is the most closely watched indicator for the world's largest economy.
Benchmark oil for August delivery was down 4 cents to $97.95 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.43 to close at $97.99 a barrel on Monday.
In currencies, the euro fell to $1.3062 from $1.3065 late Monday in New York. The dollar fell to 99.59 yen from 99.63 yen.
- Investment & Company Information
- Federal Reserve