Asia stocks gain as China PMI lifts market mood
Asian shares gained on Tuesday after China’s manufacturing sector grew more than anticipated in June. The gain was a positive sign despite the global economic struggle amid the coronavirus pandemic.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.9%. Meanwhile, U.S. stock futures, the S&P 500 e-mini futures, were up 0.23%.
Hong Kong stocks surged 1.18% despite the passage of Beijing’s controversial security law. The Nikkei was up 2%.
Australia’s stock market, which has deep economic ties with China, gained 1.59%, while shares in China rose 0.72%.
Still, Asian shares are due for a 7% fall over the first half of this year.
China’s official purchasing managers’ index showed that factory activity grew for the fourth consecutive month. The PMI for the services sector also grew.
However, the recent surge in new coronavirus infections raised doubts on quick economic recovery, keeping markets on edge.
Total global COVID-19 infections hit more than 10 million, while deaths exceeded half a million over the weekend.