Asia Set for Gains After Robust China PMI

Japan's Nikkei average is expected to snap a three-day losing streak on Monday and open higher, as stronger-than-expected Chinese manufacturing data eased worries of an economic slowdown and a softer yen underpinned sentiment.?

The closely watched Bank of Japan tankan survey released before the open is also expected to provide support.?

Market players said the Nikkei [.N225? Loading...? ? ? () ? ] was likely to trade between 10,050 to 10,200 on Monday, after Nikkei futures in Chicago closed at 10,165, up 75 points or 0.7 percent, from the close in Osaka of 10,090.

The benchmark Nikkei has a 14-day relative strength index of 62.2, still below the 70 threshold that signals the index is "overbought", after the Nikkei held above the overheated level
for most of March.??

Strategists said China's official PMI (Purchasing Managers' Index), which jumped to an 11-month high of 53.1 in March, up from February's 51 and comfortably ahead of forecasts of 50.5, was likely to support market gains.

In Europe, budget cuts in Spain boosted hopes the country could stick to an austerity path, while finance ministers from the 17 countries sharing the euro raised the combined lending
capacity of their two bailout funds to 700 billion euros from 500 billion.????

U.S. stocks closed their strongest quarter in more than two years on a positive note on Friday, led by recently underperforming sectors, including energy and health care.?

In Tokyo, the Nikkei closed down 0.3 percent at 10,083.56 on Friday but ended the quarter up more than 19.3 percent, logging its best first-quarter performance in 24 years.

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