At closing bell, the benchmark Shanghai Composite Index was up 0.44%, or 14.93 points, to 3,410.61. The Shenzhen Composite Index, which tracks stocks on China's second exchange, advanced 0.67%, or 15.36 points, to 2,310.85.
The blue-chip CSI300 index added 0.54%, or 25.90 points, to 4,842.12, with financial sector sub-index gaining 0.08 percent, the consumer staples sector rising 0.21 percent, the real estate index falling 0.25 percent and the healthcare sub-index sliding 0.36 percent.
China stocks gained as the Caixin/Markit manufacturing Purchasing Managers' Index (PMI) for August came in at 53.1. On Monday, China's official manufacturing PMI for August came in at 51.0, according to the country's National Bureau of Statistics. The strong reading showed activity in the worlds' second-biggest economy is bouncing back, as the world begins to come out of the enforced lockdown for the virus.
Defence-related stocks in China surged after fresh conflict reignited between Chinese and Indian troops at the border of both countries.
Shares of Chinese electric car maker BYD Co Ltd in Shenzhen rose to daily limit of 10 percent after the company's coaches were selected for California purchasing contract.
CURRENCY NEWS: China's yuan strengthened against greenback on Tuesday, on improving domestic data and a widening interest rate gap favouring the Chinese currency. The recent pledge by China and the United States to stick to their Phase 1 trade agreement also proved supportive for the yuan, despite the strained ties between the world's two biggest economies over a broad range of issues. The onshore yuan CNY=CFXS reached the strongest level since May at 6.8181 per dollar while the offshore yuan CNH=D3 hit a July 2019 high at 6.8178. Both are up 0.4% on the day and stood 5% stronger than their year-to-date trough in June.
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