China Market falls after disappointing after PMI

Mainland China share market finished session deeply in negative territory on Wednesday, 31 January 2024, after official data showing manufacturing sector faced its fourth consecutive month of contraction in January in a sign that all stimulus efforts are failing.

At close of trade, the benchmark Shanghai Composite index fell 1.48%, or 41.98 points, to 2,788.55. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 3.03%, or 48.22 points, to 1,544.90. The blue-chip CSI300 index declined 0.91%, or 29.69 points, to 3,215.35.

ECONOMIC NEWS: The manufacturing sector in China continued to contract in January, albeit at a slower pace, the latest survey from the National Bureau of Statistics revealed on Wednesday with a manufacturing PMI score of 49.2. That's up from 49.0 in December, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction. The non-manufacturing index improved to 50.7 in January, the NBS said - up from 50.4 in the previous month.

 

CURRENCY NEWS: China's yuan eased against the dollar on Wednesday, despite firmer mid-point fixing by the central bank. Prior to the market's opening, the People's Bank of China set the midpoint rate at 7.1039 per U.S. dollar, 16 pips firmer than the previous fix 7.1055. In the spot market, the onshore yuan CNY=CFXS yuan was changing hands at 7.1817 at midday, 28 pips weaker than the previous late session close.

Powered by Capital Market - Live News