At closing bell, the benchmark Shanghai Composite Index added 0.71%, or 24.42 points, to 3,466.33. The Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 1.11%, or 24.57 points, to 2,242.19. The blue-chip CSI300 index grew 1.24%, or 62.42 points, to 5,110.78.
U.S. President Joe Biden on Wednesday set the stage for further spending to boost the world's largest economy, with a $2 trillion proposal to create millions of jobs around infrastructure, tackling climate change and boosting human services such as care for the elderly.
China's factory activity in March expanded at the slowest pace in almost a year on softer overall domestic demand. The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) dropped to 50.6 last month the lowest level since April 2020 from February's 50.9, missing analyst expectations for an uptick to 51.3. The 50-mark separates growth from contraction on a monthly basis.
The findings contrast with those in an official survey which showed manufacturing activity grew at a stronger pace as large firms ramped up production after a brief lull during the Lunar New Year holidays. The official manufacturing Purchasing Manager's Index (PMI) rose to 51.9 from 50.6 in February, data from the National Bureau of Statistics (NBS) showed yesterday, remaining above the 50-point mark that separates growth from contraction for the 13th straight month.
CURRENCY NEWS: China's yuan weakened against the dollar on Wednesday despite firmer mid-point fixing by the central bank. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.5584 per dollar from the previous fix of 6.5713. Spot yuan opened at 6.5550 per dollar and softened to 6.5681 by midday, 163 pips weaker than Wednesday's late session close.
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