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Australia Market rises on positive Chinese data

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The Australian share market kicked off the new week, month and season in positive territory on Monday, 02 December 2019, as the market mood was buoyed by robust Chinese manufacturing data released over the weekend. Around late afternoon, the benchmark S&P/ASX200 index inclined 31.30 points, or 0.46%, to 6,877.30, while the broader All Ordinaries added 30.72 points, or 0.44%, to 6,978.70.

Sydney stocks commenced trading with firm footing after weekend data showed China's November factory activity had rebounded for the first time in seven months despite uncertainty over US-China trade talks. The closely watched Purchasing Managers' Index (PMI), a key gauge of activity in the country's factories, rose to 50.2 in November, up from 49.3 last month, China's National Bureau of Statistics said on Saturday. Separately, a private survey on Monday showed China's manufacturing activity expanded more than expected in November as the Caixin/Markit manufacturing Purchasing Managers' Index (PMI) came in at 51.8.

U. S.-China tensions heightened last week after Trump signed two pieces of legislation supporting protestors in Hong Kong, prompting China's foreign ministry to claim Washington has sinister intentions after the bills were signed into law. A spokesman for the Chinese foreign ministry added Friday the country will take strong counter-measures against the U. S. The situation in Hong Kong has raised concerns of strains in trade negotiations between Washington and Beijing ahead of Dec. 15, when new tariffs on Chinese exports to the U.

S. are set to kick in.

Opthea (OPT) was up 9% after raising A$50m from investors via an institutional placement. This is expected to provide more funding certainty as it continues to invest in developing its macular degeneration treatment. OPT shares have surged by more than 400% Year-to-Date

Amaysim (AYS) was up 9% after it completed the purchase of Jeenee Communications for $7.8m. Jeenee is a privately-owned mobile virtual network operator.

ECONOMIC NEWS: Australia Building Approvals Down 8.1% On Month In October-- Australia's total number of building permits issued in October was down a seasonally adjusted 8.1% on month in October, the Australian Bureau of Statistics said on Monday - coming in at 13,049, following the 7.2% gain in September. On a yearly basis, building approvals plummeted 23.6%, after sliding 17.0% in the previous month.

Australia AiG Manufacturing PMI Falls Into Contraction-- Australia manufacturing sector fell into contraction in November with a seasonally adjusted Performance of Manufacturing Index Score of 48.1, the latest survey from the Australian Industry Group revealed on Monday. That's down from 51.6 in October and it slides beneath the boom-or-bust line of 50 that separates expansion from contraction. It also represents a three-year low for the index.

CURRENCY NEWS: The Australian dollar, sensitive to shifts in broader risk appetite, strengthened changed against greenback. The Australian dollar changed hands at $0.6774 after declining from levels above $0.678 in the previous trading week.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, December 02 2019. 10:38 IST