In today’s trading, Chinese shares outperformed most other Asian markets and thus limited the losses in Hong Kong which resumed trade after Typhoon Usagi. Chinese share received support from investors when a survey came out that manufacturing sector of the country has received higher growth and has gone to a six-month high this month.
Amidst the news that Chinese share are faring better than their Asian counterparts, the flash China HSBC Purchasing Managers’ Index (PMI) also climbed to 51.2 in September from a final 50.1 reading in August, which is in fact is the highest since March. In addition to HSBC PMI, 10 of 11 sub-indices rose in September this year.
Better Trading Day for Shipping Companies and Milk Producers
Samsung Heavy Industries Co Ltd and Hyundai Heavy Industries Co Ltd had a good trading day, as their shares rose by 2.7 percent and 2.5 percent, respectively. Similarly, it was a better trading day for Daewoo Shipbuilding & Marine Engineering Co Ltd which gained 1.9 percent as investors hope that shipping companies have a better export market.
This was a good trading day for Chinese milk powder makers Inner Mongolia Yili Industrial Group whose share went up by 3.5 percent in Shanghai. Similarly, China Mengniu Dairy shares obtained a 4 percent growth in Hong Kong. The two companies have got governmental support as it feels that the sector needs a consolidation.
Despite Better China Survey Asia Stocks Down
Shares in Shanghai gained 1.0 percent; a similar trend was seen in Taiwan’s main index which went up by 0.9 percent. Bearish mood was also seen in Australian shares which went down by 0.5%. There was no trading in the Japanese stock markets as these are closed for a holiday.
Samsung Electronics and Hyundai Motors both did not fare well today. Whereas Tech giant Samsung Electronics Co Ltd fell 1.3 percent, automaker Hyundai Motor Co was down 1 percent. According to market observers Samsung Electronics Co Ltd did not fare well as foreign investment banks lowered forecasts for the company’s quarterly earnings.
Investment bankers are concerned about the sharp decline in television prices and sales, and do not want to risk investing in Samsung for the time being. Similar to Samsung Electronics, Hyundai Motor Co was down 1 percent amidst the news that Europe’s car market does not have much demand for cars indicated by the data from the month of August.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org