Chinese Stocks Despite Weak Data
Chinese stocks rose despite weak factory activity data. The Shanghai Composite increased by 0.26% and the Shenzhen Component by 0.9%, reaching over one-week highs. Optimism over a potential US Fed rate cut outweighed the negative data. Top performers included Zhongji Innolight, Eoptolink Technology, Contemporary Amperex, Gree Electric, NAURA Technology, and BYD.
The Shanghai Composite rose 0.26% to around 3,900 and the Shenzhen Component added 0.9% to 13,100, with both indices reaching over one-week highs as optimism over a potential US Fed rate cut outweighed soft factory activity data in China.
A private survey showed China’s factory activity slipping back into contraction in November, reflecting continued weakness in domestic demand.
This followed official data released on Sunday showing another month of subdued manufacturing and a cooling services sector.
Meanwhile, sentiment was supported by rising expectations of a Fed rate cut this month after soft US consumer spending and reports of a dovish Fed chair candidate.
Among top performers were Zhongji Innolight (3.7%), Eoptolink Technology (1.5%), Contemporary Amperex (0.8%), Gree Electric (0.8%), NAURA Technology (0.6%), and BYD (0.6%).
