China’s blue-chip stocks firm on strong factory data; Hong Kong up
China’s blue-chip stocks started the month on a firm note on Monday, with consumer stocks leading gains, as a private survey showing strong factory activity in China underscored its swift economic recovery from the coronavirus crisis.
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** The CSI300 index rose 0.4% to 4,712.46 points at the end of the morning session, while the Shanghai Composite Index lost 0.1% to 3,222.91 points.
** The CSI300 consumer discretionary index advanced 3.2%, with bellwether Midea Group Co Ltd rising 6.5% to a record high.
** Activity in China’s factory sector accelerated at the fastest pace in nearly a decade in October as domestic demand surged, a private business survey showed on Monday, adding further momentum to the economic recovery.
** “Recovery was the word in the current macro economy, with the domestic epidemic under control. Manufacturing supply and demand improved at the same time,” Wang Zhe, senior economist at Caixin Insight Group, wrote in a note accompanying the survey release.
** Investors shifted their focus to external factors after Chinese companies posted their earnings results in the third quarter.
** Going into November, the uncertainties for the A-share market are mainly external, including the U.S. election and the lockdowns in Europe due to the resurgence of the coronavirus outbreak, Huajin Securities said in a note.
** In Hong Kong, the Hang Seng index added 0.9% to 24,318.40 points, while the Hong Kong China Enterprises Index gained 1.1% to 9,868.69 points.
** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 1.50% while Japan’s Nikkei index was up 1.33%.
** The yuan was quoted at 6.6878 per U.S. dollar, 0.08% firmer than the previous close of 6.6932.
** As of 04:19 GMT, China’s A-shares were trading at a premium of 45.21% over the Hong Kong-listed H-shares.
Source : Reuters | Photocredit : Google