Market Commentary - Foreign Markets
China Market rebounds 1.1% on industrial profits data As on : 27-May-24  16:31

Mainland China share market finished sharply higher on Monday, 27 May 2024, as investors took heart from domestic industrial firms profit data which swung back into positive territory in April, suggesting policies to bolster the economy were starting to take effect.

However, market gains capped on caution ahead of key economic data releases at both home and from abroad this week, including China's May manufacturing data and the U.S. core personal consumption expenditures price index, for more clues on the market's trajectory.

At close of trade, the benchmark Shanghai Composite index surged 1.14%, or 35.17 points, to 3,124.04. The Shenzhen Composite Index, which tracks stocks on China's second exchange, climbed up 0.75%, or 13.04 points, to 1,747.83. The blue-chip CSI300 index advanced 0.95%, or 34.23 points, to 3,635.71.

ECONOMIC NEWS: Profits at China's industrial firms rose 4.3% in the first four months (January to April) from the same period last year, according to National Bureau of Statistics (NBS) data. The jump followed a 4.3% increase in the first quarter. In April, profits rose 4%, after a 3.5% slide in March.

CURRENCY NEWS: China?s yuan hovered near a one-month low against the dollar on Monday, despite the country's central bank set slight stronger official guidance rate. Prior to the market's opening, the People's Bank of China set the midpoint rate at 7.1091 per dollar, 11 pips firmer than the previous fix of 7.1102. In the spot market, the onshore yuan CNY=CFXS yuan opened at 7.2405 per dollar and was changing hands at 7.2451 at midday, 16 pips softer than the previous late session close.

Powered by Capital Market - Live News