China Market falls after factory activity contracts in Aug

1 Sep 2022 , 04:53 PM

Mainland China share market finished session lower on Thursday, 01 September 2022, after a private survey showed the countrys manufacturing sector slipped into contraction for the first time in three months in August as Covid infections, the worst heatwaves in decades and an embattled property sector wei?ghed on production, suggesting the economy will struggle to sustain momentum. At close of trade, the benchmark Shanghai Composite Index was down 0.54%, or 17.16 points, to 3,184.98. The Shenzhen Composite Index, which tracks stocks on Chinas second exchange, dropped 0.74%, or 15.46 points, to 2,080.60. The blue-chip CSI300 index decreased 0.86%, or 35.10 points, to 4,043.74. ECONOMIC NEWS: The official manufacturing purchasing managers index (PMI) rose to 49.4 in August from 49.0 in July, the National Bureau of Statistics (NBS) said on Wednesday. The new export orders ind?ex rose from 47.4 to 48.1, indicating softening momentum. CURRENCY NEWS: Chinas yuan softened against the dollar on Thursday, despite persistently firmer-than-expected official guidance, as broad dollar strength in global markets. Prior to market opening, the PBOC set the midpoint rate CNY=PBOC at 6.8821 per dollar, 85 pips firmer than the previous fix of 6.8906. The onshore yuan CNY=CFXS finished the domestic trading session at 6.8990 per dollar, down 72 pips from the previous late night close of 6.8918. Powered by Capital Market – Live News