Chinese Shares Rise After Positive Factory Survey

Chinese shares continued to rise after a government survey indicated that factory activity had picked up unexpectedly in March.

The latest Purchasing Managers’ Index (PMI) rose to 50.1, up from February’s 49.9 and higher than market forecasts.

A reading above 50 points shows an expansion in activity in the sector, while one below indicates contraction.

The Shanghai Composite index closed up 1.7% at 3,810.29, while Hong Kong’s Hang Seng gained 0.7% to 25,082.75.

However, while the official PMI survey suggested activity had expanded, a private survey indicated it had contracted, in line with preliminary figures released earlier this month.

The final HSBC/Markit PMI came in at 49.6, slightly higher than a “flash” reading of 49.2.

China has cut interest rates twice since November, among other measures, to try to boost activity.

via BBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza