Asian markets were trading higher in the morning session led by exporter and banking shares. However slower manufacturing growth in China and Japan may cap the gains.
Japan's Nikkei Stock Average was up 0.5% following overnight gains made on Wall Street and strong exporter shares. Markets shrugged off deterioration in manufacturing activity April-June quarter according to Bank of Japan Tanken survey. Sentiment among large manufacturers dropped to -9 from the reading of +6 in March.
Also China's manufacturing activity slipped to 50.9 in June from 52 in May which depressed market gains. The Shanghai Composite index was trading flat, at 2,895.
Hong Kong's Hang Seng index was trading firm, up 1.5% led by gains in banking shares.