On Monday, Asia-pacific stocks stepped higher, driven by the upturns in major Chinese benchmarks.
Accordingly, the Shenzhen Component benchmark advanced by 1.20% to the 12,413.87 mark. Likewise, the Shanghai Composite index added 0.21% to the 3,259.96 level.
Then, the CSI 300 blue-chip gauge was up 0.60%, following the uptrend of Asia-Pacific stocks. Subsequently, the consumer-oriented service sector shares gained the most. For instance, Tsingtao Brewery, Anhui Jianghuai Automobile Group, and Citic Guoan Wine were among the best performers on the index. The companies increased between 7.00% and 10.00%.
In today’s session, China’s manufacturing activity posted at 50.40 last month, compared with the analysts’ expected 51.50. Moreover, the latest result dropped from the prior 51.70 amid the slower increase in output and new orders. This report illustrated the impact of COVID-19 lockdowns and electricity shortages.
Nevertheless, the economic figure came in better than Beijing’s official Purchasing Managers’ Index data released over the weekend. The PMI figure marked a 49.00 record, a contraction in factory activity, capping gains for Asia-Pacific stocks.
However, analysts cited that the poor start to the third quarter amplifies the risk that China will miss its 2022 economic growth target. The downturn came in against a backdrop of the authorities signalling no massive stimulus, weighing the outlook for Asia-Pacific stocks.
Regardless, experts anticipated the service industries to keep expanding in August as summer holiday travels within China should boost activities.
Asia-Pacific stocks rise as Hong Kong moves up
Hong Kong stocks also contributed to gains in the Asia-Pacific stocks following the release of the country’s GDP report. The Hang Seng index climbed 0.05% to the 20,165.84 mark.
The special administrative region of China reported a 0.90% quarter-over-quarter economic growth in the three months to June. This latest result indicated recovery from the previous 3.00% decline.
Meanwhile, Hong Kong shares of HSBC Holdings surged 4.96% or 2.45 points to HK$51.85 per share. The jump occurred after the firm raised its expected return on tangible equity to 12.00% from 2023.
On the other hand, Japan’s Nikkei 225 gained 0.69% to close at 27,993.35. In Australia, the S&P/ASX 200 inched up 0.69% at 6,993.00, adding gains to Asia-Pacific stocks.
Then, the Kospi in South Korea was mildly higher at 2,452.25. Furthermore, MSCI’s broadest index of Asia-Pacific stocks outside of Japan was 0.21% higher.
