Asian stock indices traded higher due to the strong manufacturing data from China. The Chinese manufacturing purchase managers' index increased to 51.0 in June from 50.8 in May, in line with expectations. This is a sign of a recovery in the world's second largest economy.

China's final HSBC manufacturing purchase managers' index declined to 50.7 in June from 50.8 in May. Analysts had forecasted the index to remain unchanged at 50.8.

Japan's Tankan manufacturing index was plus 12 in the second quarter, missing expectations for plus 16, after plus 17 the previous quarter. This was the first decline in six quarters.

Japan's Tankan non-manufacturing index was plus 19 in the second quarter, in line with expectations, after plus 24 the previous quarter.

Japan's average cash earnings climbed 0.8% in May, in line with expectations, after a 0.7% gain in April.

Markets in Hong Kong were closed for holidays.

Indexes on the close:

Nikkei 225 15,326.2 +164.10 +1.08%

Hang Seng closed

Shanghai Composite 2,050.38 +2.05 +0.10%