China Stocks rebound 2.6%

Mainland China share market finished session sharply higher on Tuesday, 1 November 2022, as the Caixin PMI data for China's factory activity came in slightly better than expected and hopes that the country will ease its disruptive COVID-Zero policy by the end of this year.

At close of trade, the benchmark Shanghai Composite Index surged 2.62%, or 75.72 points, to 2,969.20. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 2.97%, or 55.94 points, to 1,942.36. The blue-chip CSI300 index increased 3.58%, or 125.47 points, to 3,634.17.

The Caixin manufacturing Purchasing Managers' Index for October showed that factory activity contracted for the third month in a row at 49.2. In September, the manufacturing PMI was at 48.1, below the 50-point mark that separates growth from contraction. Official data from the National Bureau of Statistics came in at 49.2 on Monday, down from September's 50.1 and below the 50-point mark separating growth from contraction.

CURRENCY NEWS: China's yuan hit a near 15-year low against the dollar after the People's Bank of China set the official guidance rate at its lowest level since the global financial crisis of 2008. The onshore yuan CNY=CFXS opened at 7.3201 per dollar and quickly touched 7.3280, the lowest since Dec. 26, 2007.

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