Sun, May 19, 2024

Chinese Stocks Benefited from the Manufacturing Activity

Central banks and interesting details

Stocks in the Asia Pacific strengthened their positions thanks to the information connected with China’s official manufacturing Purchasing Manager’s Index (PMI). Importantly, the country’s June manufacturing activity surpassed expectations.

Mainland Chinese stocks saw gains on the day. The Shenzhen Component jumped 2.042% to approximately 11,992.35. At the same time, the Shanghai Composite added 0.78% to about 2,984.67.

Also, Hong Kong’s Hang Seng index gained 0.25% as of its final hour of trading, with shares of life insurer AIA falling 1.17%. China passed a controversial national security law that could trigger demonstrations.

Japanese stocks also strengthened their positions. The Nikkei 225 advanced 1.33% to close at 22,288.14. On Monday, the Nikkei 225 dropped 2%. In the meantime, the Topix index gained 0.62% to finish its trading day at 1,558.77.

Moreover, South Korea’s Kospi index added 0.71% to close at 2,108.33%.

Interestingly, Australia’s S&P/ASX 200 gained 1.43% to end its trading day at 5,897.90.

Manufacturing activity and stocksMarkets and coronavirus pandemic

Importantly, China’s official manufacturing PMI for this month came in at 50.9 based on the information provided by the country’s National Bureau of Statistics (NBS). Notably, PMI readings above 50 signify expansion while below 50 indicates contraction. Last month, the official manufacturing PMI was lower by 0.3.

Japan’s industrial production in May fell 8.4% month-on-month according to the data released in a preliminary report by the country’s Ministry of Economy, Trade, and Industry.

Another important issue is the coronavirus pandemic. This topic is important as investors are closely monitoring the situation. Tedros Adhanom Ghebreyesu serves as the Director-General of the World Health Organization (WHO). According to the head of the World Health Organization, the coronavirus pandemic is far from being over. Thus, it is hard to talk about the post-coronavirus world. Hopefully, governments around the world are ready to do whatever it takes to deal with the crisis.

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