Asian equities hit 12-month high and US small caps rally

The MSCI Asia-Pacific has hit its highest level in 12 months after a US session which saw small caps move off recent lows.

Data showing China's factory sector output reached a five-month high buoyed sentiment in Asia, with MSCI's main regional benchmark rising to a one-year high of 488.42. While Hong Kong's Hang Seng was muted, rising just 0.1% to 22,977, India's BSE Sensex index continued recent gains to move up 0.75% to 24,558. It was not only Asian factories which saw a boost as U.S. factory output growth also reached its fastest pace since February 2011. Similarly positive news on US housing starts helped domestic small caps bounce. The Russell 2000 index rose 0.9% to 1113.87, continuing a slight r...