China Market rises after manufacturing PMI expands in October

The Mainland China equity market closed sharp higher on Friday, 01 November 2019, as investors risk sentiments underpinned after private survey of factory activity in China showed manufacturing activity in the country expanded more than expected in October. Meanwhile, buying momentum supported by growing optimism around a potential trade deal after U.S. President Donald Trump said on Thursday the United States and China would soon announce a new site where he and Chinese President Xi Jinping will sign a "Phase One" trade deal after Chile canceled a planned summit set for mid-November. At closing bell, the benchmark Shanghai Composite Index advanced 1%, or 29.14 points, to 2,958.20. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 1.3%, or 20.81 points, to 1,637. The blue-chip CSI300 index grew 1.7%, or 65.64 points, to 3,952.39.

China's manufacturing Purchasing Managers' Index rose to 51.7 from 51.4 in September, data from IHS Markit showed Friday. A score above 50 indicates expansion. The index has now signaled an improvement in operating conditions for three months running, with the latest improvement the strongest since February 2017. Output and new orders both expanded at steeper rates. However, efforts to contain costs contributed to a further drop in staffing levels.

Powered by Capital Market - Live News