Chinese Stocks Rise on Upbeat Manufacturing Data
Xinhua News Agency, September 23, 2013 Adjust font size:
Chinese stocks closed higher on Monday morning after the HSBC Flash Purchasing Managers' Index for September hit a six-month high.
In the morning, the benchmark Shanghai Composite Index went up 0.79 percent to 2,209.18 and the Shenzhen Component Index rose 1.74 percent to 8,628.72.
A Flash PMI reading of 51.2 for September was the highest since April and up from August's 50.1. A figure above 50 signals expansion, while below 50 indicates contraction.
The September reading was beyond market expectations, indicating the economy continues to rebound and momentum will continue in the following quarters, HSBC's chief economist for China Qu Hongbin said on Weibo.
The rally in Chinese stocks was also a delayed response to the Federal Reserve's announcement to postpone unwinding its stimulus, or tapering.
The Fed last Wednesday surprised markets by delaying the long-debated tapering of its current monthly US$85 billion bond purchase program, citing concerns over tighter financial conditions and fiscal headwinds.
While many financial markets rose after the news, Chinese stock markets were silent as they were closed last Thursday and Friday for the Mid-Autumn Festival.
