Asian stocks rise as upbeat China PMI offers relief

Asian stocks rise as upbeat China PMI offers relief

Most Asian stock markets rose on Tuesday

as China’s manufacturing activity beat expectations and offered

further signs of recovery in the world’s second-largest economy,

helping offset worries over a surge in global coronavirus cases.

Chinese factory activity expanded at a stronger pace in

June, according to the official manufacturing Purchasing

Manager’s Index, underpinned by faster expansion in production,

as the economy continues to recover after the government lifted

strict lockdowns and ramped up investment.

Positive leads from Wall Street overnight on the back of

upbeat U.S. housing data also added to the relief.

The onshore Chinese yuan firmed 0.2% to 7.066

against the U.S. dollar, putting it on track for its best

performance in nearly two weeks, while Chinese stocks

also rose.

China passed national security legislation for Hong Kong

aimed at increasing its control over the financial hub,

according to the city’s Cable TV. Hong Kong stocks,

however, were unfazed, climbing 1.2%.

Thai stocks jumped more than 1%. Late on Monday, the

country announced plans for a 50 billion baht ($1.62 billion)

fund to help small businesses affected by the coronavirus


Singapore stocks jumped 1%, boosted by real estate

heavyweight Capitaland Ltd’s 3% rise and gains in top

lenders such as DBS Group and Oversea-Chinese Banking


Most currencies, however, were largely unchanged, except for

the Taiwan dollar which rose 0.7%.

The Indonesian rupiah traded 0.2% lower, a day after

its finance minister said the government may sell low-yielding

bonds to the central bank via private placement to help finance

a ballooning fiscal deficit.

The currency weakened on Monday, as investors worried about

the inflationary risks of Bank Indonesia buying low yield bonds.

“Investors are likely to scrutinize the central bank’s

growing part in the borrowing program, especially as part of

the issuance is now being conducted at cheaper than prevailing

market levels,” analysts at DBS Group Research wrote.

“Clear strategy on usage of funds and exit plans are

necessary to placate investors.”


** Top gainers on Thailand’s SETI included AQ Estate

PCL up 50% and Capital Engineering Network PCL

up 12.86%

** Top gainers on FTSE Bursa Malaysia Kl Index

included Top Glove Corp up 4.46% and Hartalega

Holdings up 3.36%

** Indonesian 10-year benchmark yields eased 0.1 basis

points to 7.232%​​ while 3-year yields fell 8.9 basis points

to 6.045%​​

Asia stock indexes and

currencies at 0339 GMT





Japan -0.14 +0.84 1.76 -5.39


India 0.00 -5.56 0.00 -15.25

Indones -0.21 -2.25 0.45 -21.84


Malaysi +0.12 -4.40 0.67 -5.31


Philipp -0.15 +1.76 0.66 -21.36



Singapo +0.03 -3.50 1.08 -19.27


Taiwan +0.59 +2.23 0.38 -3.42

Thailan +0.00 -3.11 1.09 -14.91


(Reporting by Rashmi Ashok in Bengaluru

Editing by Vidya Ranganathan and Jacqueline Wong)

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *