Japan’s Nikkei index closed higher as sentiment improved on Chinese data

Japan’s Nikkei index extended gains to close higher on Wednesday as sentiment improved after data showed manufacturing activity in China expanded in February at the fastest pace in more than a decade.

The Nikkei index closed up 0.26 percent at 27,516.53 points, after falling as much as 0.5 percent earlier on Wednesday on the trail of the main indices on Wall Street.

The broader Topix index rose 0.23 percent to 1,997.81 points.

The Dow Jones Industrial Average fell last night by 0.71 percent, the Standard & Poor’s 500 Index fell by 0.30 percent, and the Nasdaq Composite Index fell by 0.1 percent.

The PMI for China’s manufacturing sector jumped to 52.6 last month, far outpacing analysts’ expectations of 50.5.

Japan’s Ajinomoto jumped 9.31 percent after the processed food company raised its annual profit forecast and announced an upward dividend policy, which supported the benchmark index.

The food and beverage products sector index rose 0.7 percent. The index of shares of oil exploration companies rose 2.81 percent, leading the gainers among the 33 sub-indices on the Tokyo Stock Exchange.

Banking shares fell 0.294%, after rising 9% so far this year.