Market Commentary - Foreign Markets
China Market falls on weak PMI data As on : 31-May-24  15:07

Mainland China share market finished modestly lower on Friday, 31 May 2024, as risk sentiments weight down after an official factory survey showed the country's manufacturing activity unexpectedly contracted in May.

However, market losses capped as the weakening in Chinese factory and non-manufacturing activities kept alive calls for fresh stimulus to boost the economy.

At close of trade, the benchmark Shanghai Composite index declined by 0.16%, or 4.86 points, to 3,086.81. The Shenzhen Composite Index, which tracks stocks on China's second exchange, edged up 0.2%, or 3.53 points, to 1,729.65. The blue-chip CSI300 index decreased by 0.4%, or 14.39 points, to 3,579.65.

ECONOMIC NEWS: China Manufacturing Sector Falls Into Contraction- The manufacturing sector in China slipped into contraction territory in May, the latest survey from the National Bureau of Statistics showed on Friday with a manufacturing PMI score of 49.5. The non-manufacturing PMI came in at 51.1, shy of expectations for 51.5 and down from 51.2 in the previous month. The composite PMI was 51.0 versus forecasts for 51.4 and down from 51.7 a month earlier.

China Non-Manufacturing PMI Dips to 51.1 in May 2024- China's NBS Non-Manufacturing PMI edged down to 51.1 in May 2024 from 51.2 in April, marking the 17th consecutive month of expansion but the slowest pace since January. New orders remained weak, while declines in foreign sales and employment accelerated. Delivery times were unchanged. Input costs fell after a rise in April, and selling prices decreased for the eighth month in a row, with the steepest drop in the sequence. Sentiment remained positive but slightly softened.

CURRENCY NEWS: China?s yuan edged up against the dollar on Friday despite the country's central bank set slight firmer official guidance rate. Prior to the market's opening, the People's Bank of China set the midpoint rate at 7.1088 per U.S. dollar, 0.03% firmer than the previous fix at 7.1111. In the spot market, the onshore yuan CNY=CFXS yuan opened at 7.2220 per dollar and was changing hands at 7.2412 at midday, 92 pips or 0.13% weaker than the previous late session close.

Powered by Capital Market - Live News