China’s CSI 300 index of Shanghai and Shenzhen-listed stocks rose 0.5 percent in early trading on Wednesday, while Australia’s S&P/ASX 200 and South Korea’s Kospi jumped 0.9 per cent and 1.1 per cent, respectively. Hong Kong’s stock market was closed for a public holiday. The FT reported Caixin manufacturing purchasing managers’ index, which is a measure of factory activity, came in at 51.2 for June, marking its second straight month of growth. Wang Zhe, senior economist at Caixin Insight Group, said this gave fresh hope of economic recovery amid the pandemic.
Wall Street’s S&P 500 closed 1.5 per cent higher.
Meanwhile, the tech-heavy Nasdaq rose 1.9 percent.
Wall Street’s S&P 500 is expected to open 0.2 percent lower when US trading opens today.
London’s FTSE 100 could slip 0.1 per cent.
FOLLOW OUR LATEST UPDATES HERE:
7am update: Steven Brown takes over from Rachel Russell
6.14am: Asia’s factory pain eases as region emerges from pandemic
Asia’s factory pain showed signs of easing in June, as a rebound in China’s activity offered some hope the region may have passed the worst of the devastation caused by the coronavirus pandemic.
But sluggish global demand and fears of a second wave of infections will tame any optimism on the outlook and keep pressure on policymakers to support their ailing economies.
China’s factory activity grew at a faster clip in June after the government lifted coronavirus lockdown measures, a private sector survey showed on Wednesday.
Manufacturing activity also expanded in Vietnam and Malaysia, pointing to a slow but steady recovery ahead.
Japan and South Korea continued to see manufacturing activity shrink, underscoring the heavy blow the pandemic dealt to their export-reliant economies, although the pace of their declines slowed.
“The chance of a V-shape recovery in the manufacturing sector appears slim at this stage,” said Joe Hayes, economist at IHS Markit, which compiles the survey.
“We’re still awaiting signs of meaningful improvement in Japan’s manufacturing sector, with the PMI for June failing to stage a substantial recovery.”
Published at Wed, 01 Jul 2020 04:45:00 +0000