FX.co ★ China Stocks Rebound on Upbeat PMI Data

The Shanghai Composite Index rose 0.5% to 3,960 on Thursday, while the Shenzhen Component advanced 0.4% to 13,666, ending a two-session losing streak. The gains came as fresh PMI data reinforced signs of improving economic momentum in China.

A private survey showed the composite PMI climbed to 52.1 in August from 50.8, supported by stronger growth in both services and manufacturing. The services PMI increased to 51.4 from 50.4, while the manufacturing PMI rose to 51.5 from 50.9.

These figures followed official data indicating that the composite PMI edged up to 49.5 from 49.3. Within that, manufacturing activity improved to 49.8 from 49.2, while the non-manufacturing index was unchanged at 49.

Sentiment was also aided by geopolitical developments, after US President Donald Trump moved to ease concerns about a wider conflict with Iran, suggesting that any renewed hostilities would likely remain contained.

Notable gainers in the session included Foxconn Industrial Internet (up 1.9%), SMIC (1.2%), Eoptolink Technology (1.7%), and Weichai Power (2.2%).