China Stocks up as PMI strengthens

The Mainland China equity market eked out small gains on Monday, 03 July 2017, buoyed by positive economic data showing manufacturing expansion and demand, and optimism about companies' interim results after strong guidance in sectors, including non-ferrous metals, electronics, property, light manufacturing and chemicals. But, concerns of economic slowdown in the second half and lingering fears of monetary tightening checked investor risk appetite and capped the upside. Financial and consumer stocks fell on profit-taking but commodity shares rose on the back of higher raw material prices triggered by recent dollar weakness. The Shanghai Composite Index edged up 0.11 percent to 3,195.91 points.

Sentiment was boosted by a rise in the Purchasing Managers' Index to 50.4 in June from 49.6 in May, released by business and financial reporting company Caixin. The Caixin manufacturing PMI stood above 50, which indicated expansion in manufacturing in June. A reading below 50 reflects a contraction.

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