Asian shares inch up, China's factories show flicker of life

Asian shares were closing out a calamitous quarter with a tentative rally on Tuesday as factory data from China held out the hope of a rebound in activity, even as much of the rest of the world shut down.

China's official manufacturing purchasing managers' index (PMI) bounced to 52.0 in March, up from a record-low 35.7 in February and topping forecasts of 45.0.

Analysts cautioned the index could overstate the true improvement as it measures the net balance of firms reporting an expansion or contraction in activity.

If a company merely resumed working after a forced stoppage, it would read as an expansion without saying much about the overall level of activity.

The number was enough of a relief to help MSCI's broadest index of Asia-Pacific shares outside Japan rise 1.1%. That still left it down 22% for the quarter, its worst performance since 2008.

Gains were modest at best with Shanghai blue chips up 0.6% and South Korea up 1.7%. Japan's Nikkei eased 0.6%, to be down 20% since the start of the year.

E-Mini futures for the S&P 500 edged up 0.1%, supported by end of month book-keeping demand. EUROSTOXX 50 futures rose 0.7% and FTSE futures 0.3%.

Healthcare had led Wall Street higher, with the Dow ending Monday up 3.19%, while the S&P 500 gained 3.35% and the Nasdaq 3.62%.

News on the coronavirus remained grim but radical stimulus steps by governments and central banks have at least provided some comfort to economies.

Infections in hard-hit Italy slowed a little, but the government still extended its lockdown to mid-April. California reported a steep rise in people being hospitalised, while Washington state told people to stay at home.

Trade ministers from the Group of 20 major economies agreed on Monday to keep their markets open and ensure the flow of vital medical supplies.