Melbourne: Asian stocks pushed higher in early trade on Thursday in line with a firmer tone on Wall Street, extending a recovery from a sharp sell-off in August on hopes the US Federal Reserve will intervene in markets to support the economy.
Global markets have gained strength in recent days, rebounding from several weeks of losses that saw Asian stocks post their worst month in August since May last year, despite concerns about a slowdown in the pace of global growth.
The pick-up has been bolstered by speculation the Fed is preparing a new round of monetary expansion, and may hint at new stimulus after its $ 600 billion bond-buying program expires in June.
US economic data show the economy continues to struggle, with the pace of private sector job growth slowing in August for a second month. Factory activity in the Chicago region expanded at its slowest pace since November 2009.
China's official PMI offered some reassurance about the pace of growth, rising on Thursday to 50.9 in August from a 28-month low of 50.7 in July and signalling some stabilisation in the manufacturing sector on solid domestic demand.
The MSCI Asia Pacific ex-Japan index rose 1 per cent in early trade, having fallen 9 per cent in August when global markets were roiled by a sovereign downgrade in the United States, persistent debt problems in the euro zone and downward revisions in growth expectations.
In Japan, the Nikkei gained 1 per cent to clear the key 9,000 level for the first time in two weeks, while South Korea's KOSPI added 1.43 per cent despite economic data showing the country's manufacturing sector shrank in August for the first time in 10 months.
Underscoring fears about a global slowdown, Brazil surprised markets by cuttings its benchmark rate to 12.0 per cent from 12.5 per cent, and expressed particular concern abut the pace of growth in mature economies.
In commodity markets, Brent crude was little changed at $ 114.95 after rising overnight, lifted by a sharp drawdown in US gasoline supplies.
Spot gold edged higher in early Asian trade to 1,826.35 an ounce, after falling about 0.7 per cent in US trade following recent strong gains.
Among currencies, the Swiss franc held on to gains made the previous day after a top government official said Switzerland would have to live with a strong currency, while commodity currencies dipped after Brazil's rate cut.
The Australian dollar fell 0.2 per cent to $ 1.0675 , slipping from a one-month high of $ 1.0722 hit on Wednesday.
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