Asian stocks: China muted on mixed PMIs, Japan surges in catch-up trade

Investing.com-- Most Asian stocks kept to a tight range on Tuesday as investors digested a mixed batch of Chinese business activity readings, while Japanese markets rose sharply in catch-up trade after a long weekend. 

Broader Asian markets were mildly positive after a small overnight gains on Wall Street. But U.S. stock futures tread water in Asian trade as anticipation of a Federal Reserve meeting this week kept investors cautious. 

Chinese stocks stall after mixed PMIs 

China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose slightly on Tuesday as investors digested a batch of mixed purchasing managers index (PMI) readings for April. Official data showed growth in manufacturing activity slowed slightly less than expected in April from March, while growth in non-manufacturing activity slowed substantially more than expected.

While a private survey painted a rosier picture of the manufacturing sector, the overall PMI data showed some cooling in activity after a strong first quarter. 

Still, a rebound in Chinese markets largely persisted in April, with local stock indexes set to outperform their regional peers for the month. The CSI300 was up 2.5% in April, while the Shanghai Composite was trading up 2.6%. 

Hong Kong’s Hang Seng index rose 0.6% on Tuesday and was by far the best-performing Asian index in April. The Hang Seng was trading up about 7.6% in April, after racing to a five-month high on bargain buying and optimism over more stimulus measures in the mainland. 

Gains in Hong Kong also reflected improved sentiment towards China.

Asian markets ex-China set for April losses 

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