Asian stocks close higher after Chinese PMIs, but Shanghai pulls back

Asian stocks close higher after Chinese PMIs, but Shanghai pulls back

Asian stocks closed mostly higher on Tuesday (5), after new activity data confirmed that the Chinese economy has resumed expansion and amid hopes that the US can cut tariffs on Chinese goods.

Japan’s Nikkei stock index rose 1.03% in Tokyo today to 26,423.47 points, while South Korea’s Kospi rose 1.80% in Seoul to 2,341.78 points, interrupting a sequence of four negative sessions, the Taiex gained 0.93% in Taiwan, at 14,349.20 points, and the Hang Seng rose by a modest 0.10% in Hong Kong, at 21,853.07 points.

Data from S&P Global/Caixin Media showed that the Chinese services PMI jumped from 41.1 in May to 54.5 in June, indicating that the segment has returned to growth after Beijing reversed restrictions motivated by Covid-19.

More recently, however, the Chinese government has enacted lockdowns in two regions.

In addition, US Treasury Secretary Janet Yellen held a virtual meeting on Tuesday with Chinese Vice Premier Liu He, fueling speculation about a possible Washington decision to reduce tariffs on Chinese goods.

In mainland China, however, stocks ended business on a slightly negative note, reversing gains from earlier. The Shanghai Composite was down 0.04% to 3,404.03 points, and the less comprehensive Shenzhen Composite was down 0.55% to 2,232.98 points.

In Oceania, the Australian stock market followed Asia’s majority, and the S&P/ASX 200 rose 0.25% in Sydney to 6,629.30 points, although the country’s central bank, known as the RBA, raised its main interest rate. interest at 50 basis points, at 1.35%.

Source: CNN Brasil