Asia close: OPEC decision boosts stocks at the start of the month

Stocks across the Asia Pacific region kicked off the new month with gains in the wake of OPEC's decision, overnight, to cut its levels of oil output and after stronger-than-expected Chinese factory data.

Japanese and Australian shares did best, with only benchmarks in Mongolia, South Korea and India to be seen on their backfoot.

Hong Kong's Hang Seng edged up 0.39% to 22,878.23 on heavy trading volumes and led by oil stocks following OPEC's decision overnight to cut its output to 32.5m b/d, while the Shanghai Stock Exchange's Composite Index rose 0.72% to 3,273.31.

Shares in Chinese sewage treatment firm CT Environmental crashed lower after they resumed trading. On 28 November, Glaucus Research accused the company of publishing misleading figures on its water treatment volumes.

In parallel, the Nikkei-225 gained 1.12% to close at 18,513.12, while Sydney's S&P/ASX 200 tacked on 1.10% to 5,500.24 - its best level since late August - as copper and iron ore futures advanced.

Caixin's Chinese manufacturing sector purchasing managers' index slipped from a 27-month high of 51.2 in October to 50.9 for November, edging past forecasts for a reading of 50.8.

A separate "official" gauge, which is more geared towards larger-sized firms, increased from 51.2 to 51.7 (consensus: 51.0). In parallel, the services sector PMI rose from 54.0 to 54.7.

Nevertheless, many economists sounded a cautious note on the short-term outlook for growth in China.

Exports from South Korea grew for the first time since August, rising by 2.7% year-on-year in November, while imports increased 10.1%, driving an increase in the country's trade surplus from $6.97bn in October to $8.0bn.

Both figures easily surpassed the 1.6% and 2.9% increases which analysts had penciled in.

South Korea's consumer price index on the other hand advanced at a 1.3% year-on-year clip in November, the same as in the prior month but missed forecasts for it to pick-up to 1.5%.