Hong Kong Stocks Rebound From 4-Week Low on Strong China Manufacturing Data
Hong Kong stocks rebounded from a four-week low after a private report showed that China’s manufacturing industry expanded at the fastest pace in four months, easing some concerns about the reciprocal tariffs to be unveiled by the US.
The Hang Seng Index rose 0.5 per cent to 23,259.41 as of 10.02am local time. The Hang Seng Tech Index gained 0.7 per cent. On the mainland, the CSI 300 Index climbed 0.2 per cent and the Shanghai Composite Index added 0.4 per cent.
CSPC Pharmaceutical Group gained 6.1 per cent to HK$5.24, and Wuxi Biologics advanced 4.3 per cent to HK$28.30. Alibaba Group Holding gained 1.3 per cent to HK$129.60, and Tencent Holdings added 1.1 per cent to HK$502.50.
The purchasing managers’ index (PMI) compiled by Caixin rose to 51.2 in March, according to a statement released by Caixin and S&P Global on Tuesday. That is the highest reading since November when the gauge reached 51.5. An official PMI report released by the statistics bureau on Monday showed the sector expanded at the fastest pace in a year last month.
The readings add to evidence that China’s economic recovery is getting under way after a slew of stimulus measures last year.
Investors are also watching for the reciprocal tariffs that will be announced by US President Donald Trump on Wednesday. His top spokesperson said the announcement would feature “country-based” tariffs, but added that the president is also “committed” to implementing sector-based duties at another time.
Other major Asian markets all rose. Japan’s Nikkei 225 climbed 0.7 per cent, while South Korea’s Kospi rose 1.6 per cent and Australia’s S&P/ASX 200 added 0.4 per cent.
Source: SCMP
