Market Commentary - Foreign Markets
Chinese stocks rise further as central bank announces more stimulus As on : 30-Sep-24  14:51

Asian stocks ended mixed on Monday, with mainland Chinese and Hong Kong markets closing sharply higher on stimulus euphoria while Japanese markets succumbed to selling pressure after Japan's governing party chose Shigeru Ishiba, a critic of the country's longstanding ultralow interest rates, as its leader.

China's factory activity shrank for a fifth straight month in September but there was some improvement in the overall economic sentiment, an official survey showed.

The non-manufacturing business activity posted steady performance in September and PMIs from the private survey underperformed, reflecting broader weakness in both manufacturing and services.

Oil prices climbed more than 1 percent in response to China's stimulus efforts and developments in the Middle East over the weekend.

Chinese stocks rose for the ninth consecutive day and extended one of their most remarkable turnarounds in history after three of China's biggest cities eased curbs on home-buying and the country's central bank announced to lower mortgage rates for existing home loans before October 31.

The benchmark Shanghai Composite index surged 8.06 percent to 3,336.50 while Hong Kong's Hang Seng index jumped 2.43 percent to 21,133.68.

The manufacturing sector in China fell into contraction territory in September, the latest survey from Caixin revealed on Monday with a manufacturing PMI score of 49.3.

That's down from 50.4 in August, and it slips beneath the boom-or-bust line of 50 that separates expansion from contraction. The survey also showed that the services PMI came in at 50.3, down from 51.6 in August.

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