Hong Kong Stocks Jump As Chinese Manufacturing Data Points to Robust Economic Recovery

South China Morning Post2023-03-01
  • China’s official manufacturing purchasing managers’ index (PMI) climbed to 52.6 in February from 50.1 the previous month
  • Hong Kong stocks slumped 9.4 per cent in February, marking the first monthly loss since October

Hong Kong stocks jumped from the lowest level this year on Wednesday morning. Photo: AFP

Hong Kong stocks jumped from the lowest level this year as upbeat factory data pointed to a robust recovery in the Chinese economy. Asian markets were mixed amid worries about higher US interest rates.

The Hang Seng Index rose 2.6 per cent to 20,292.75 at 10.30am local time on Wednesday, the biggest gain in nearly three weeks. The Tech Index gained 4.1 per cent, while the Shanghai Composite Index added 0.6 per cent.

Video games company NetEase jumped 6.2 per cent to HK$128.6 while Tencent Holdings gained 4.7 per cent to HK$359.80. Internet search giant Baidu advanced 4.5 per cent to HK$140.80.

Property developer Longfor advanced 6.5 per cent to HK$23.85 while electric car maker BYD climbed 4.5 per cent to HK$220.60.

China’s factory activity continued to recover in February, with the official manufacturing purchasing managers’ index (PMI) rising to 52.6 from 50.1 the previous month, China’s statistics bureau said on Wednesday. A reading above 50 indicates expansion from the previous month.

Hong Kong stocks slumped 9.4 per cent in February, marking the first monthly loss since October amid growing competition between Chinese tech firms and as geopolitical tensions undermined risk appetite. Foreign investors only added 9.3 billion yuan (US$1.3 billion) worth of A-shares last month, a drastic slowdown from January.

Major Asian markets were mixed on Wednesday amid worries that the US Federal Reserve may hike interest rate higher. The Kospi in South Korea jumped 0.4 per cent, while S&P/ASX 200 in Australia and the Nikkei 225 in Japan lost 0.1 to 0.4 per cent.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment