China Market rises on upbeat services sector data

The China share market closed higher for a fourth straight session on Friday, 03 July 2020, as investors sentiments lifted by hopes of recovery in the world's second largest economy after an upbeat survey showed expansion in the country's services sector and positive business sentiments data.

At closing bell, the benchmark Shanghai Composite Index added 2.01%, or 62.24 points, to 3,152.81. The Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 1.28%, or 25.84 points, to 2,041.89. The blue-chip CSI300 index gained 1.93%, or 83.76 points, to 4,419.60. For the week, Shanghai Composite Index rose 5.8%, its best since March 2019, while the CSI300 index gained 5.8%, its best since November 2015.

China markets got a boost after a private survey showed China's services sector expanded at the fastest pace in over a decade in June as the easing of coronavirus-related lockdown measures revised consumer demand. The Caixin/Markit services Purchasing Managers' Index (PMI) rose to 58.4, the highest reading since April 2010, from May's 55.0.

Meanwhile, the People's Bank of China released surveys that showed business sentiment among bankers and entrepreneurs improved in the second quarter.

CURRENCY NEWS: The yuan edged up against the dollar on Friday, despite softer mid-point fixing by central bank. Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 7.0638 per dollar, 72 pips or 0.1% weaker than the previous fix of 7.0566. In the spot market, onshore yuan CNY=CFXS opened at 7.0700 per dollar and was changing hands at 7.0645 late afternoon, 15 pips firmer than the previous late session close.

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