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China Market gains on upbeat manufacturing PMI data

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The Mainland China shares finished session sharp higher on Monday, 01 December 2020, as the release of solid Chinese economic data and hopes of a Covid-19 vaccine becoming available soon boosting sentiment.

At closing bell, the benchmark Shanghai Composite Index surged 1.77%, or 60.18 points, to 3,451.94. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 1.64%, or 36.89 points, to 2,286.56. The blue-chip CSI300 index was up 2.15%, or 106.85 points, to 5,067.55.

China's manufacturing sector logged its strongest growth in a decade in November to indicate a sustained recovery from the Covid-19 outbreak, survey data from IHS Markit showed. The Caixin manufacturing Purchasing Managers' Index rose to 54.9 in November from 53.6 in October. This was the highest score since November 2010. Also, the purchasing managers' index (PMI) for China's manufacturing sector came in at 52.1 in November, up from 51.4 in October, the National Bureau of Statistics (NBS) said Monday. The figure marks the ninth consecutive month above of the benchmark of 50 that indicates an expansion in activity on a monthly basis.

Pharmaceutical firm Moderna said it was asking the US and European authorities to approve its coronavirus vaccine.

Moderna reported full results had confirmed a high vaccine efficacy rate, estimated at 94.1 per cent, and said it was filing Monday for emergency authorisation in the United States and Europe. It was set to join American pharmaceuticals maker Pfizer and Germany's BioNTech, which applied for similar approvals last week and have predicted their vaccine could be available in the US shortly after December 10. If the FDA agrees Moderna's product is safe and effective, the first of the drug's two doses could begin being administered to Americans by the middle of December.

ECONOMIC NEWS: China Caixin Manufacturing PMI Improves Further In November China manufacturing sector continues to expand in November, with a manufacturing PMI score of 54.9, the latest survey from Caixin revealed on Tuesday. That's up from 53.6 in October and it moves further above the boom-or-bust line of 50 that separates expansion from contraction. Individually, output and new orders both surged at the fastest rates in 10 years, while employment expanded at its fastest pace since 2011.

CURRENCY NEWS: China's yuan firmed on Tuesday, as an upbeat manufacturing survey pointed to a continued recovery in the world's second-largest economy. Prior to the onshore market's open, the People's Bank of China set the midpoint rate CNY=PBOC at 6.5921 yuan per dollar, 139 pips weaker than the previous fix of 6.5782. The offshore yuan CNH=D3 was trading at 6.5692 per dollar at midday, 158 pips firmer than the previous close of 6.5850, after falling for the past three sessions.

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

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First Published: Tue, December 01 2020. 20:30 IST