Chinese stocks soar more than 3% despite the deceleration of factory activities
The Asia markets, on Monday, tried to get back on track after continuous losses in the previous week. Due to the Coronavirus outbreak, the Chinese manufacturing data released recently has failed to meet expectations, as reported by CNBC.
Mainland Chinese stocks succeeded in adding on the day as they attempted to recover from Friday’s drop. The Shanghai composite surged 3.15% at about 2,970.93. The Shenzhen component gained 3.65% to 11,381.76 while the Shenzhen composite went up 3.769% to approximately 1,869.65. Hong Kong’s Hang Seng index also surged 0.75% by the time it reached the final hours of trading.
“China’s February manufacturing PMI at 35.7 is comparable to the sort of outcomes seen during the financial crisis. While businesses are restarting operations in China, the vast majority are operating well below capacity, and many restrictions on the movement of people remain,” Richard Yetsenga, chief economist at Australia and New Zealand Banking Group stated in a note.
Meanwhile, the Nikkei 225 in Japan recovered and ascended 0.95% on the day to 21,344.08.
South Korea’s Kospi advanced 0.78% to close at 2,002.51, and the S&P/ASX 200 declined 0.77% to close at 6,391.50 after dropping through last week.