Shanghai Index Above 3,000

123jump.com Staff
01 Jul, 2009
New York City

Stocks indexes in China closed higher after the manufacturing index advanced. The rise lifted stocks of steel makers, equipment makers, realty companies and home builders. The Shanghai Composite index closed above 3,000, the highest close since June 2008 and rebound from a low of 1,706 in November.

[R]7:00 PM Hong Kong, 7:00 AM New York – Stocks indexes in China closed higher after the manufacturing index advanced. The rise lifted stocks of steel makers, equipment makers, realty companies and home builders.[/R]

The manufacturing index showed a continued expansion in China according to a report from the Federation of Logistics. The index after adjusting for seasonality increased to 53.2 in June from 53.1 in May.

The data above indicate the expansion and export orders increased for the second month in a row.

The Shanghai Composite Index added 1.7% or 48.79 to 3,008.15 and the CSI 300 index in China closed higher 71.43 or 2.26% to 3,237.90. Hong Kong markets were closed today.

The government officials and advisors are still sending optimistic signals to the market. In a presentation to a group investors in Beijing, China central bank adviser Fan Gang said that the exports will rebound by the end of the year or in early 2010. The comments left impression that Chinese manufacturing exporters are still hoping to increase sales to the U.S. and European markets.

Gainers & Losers

The release of manufacturing index data lifted steel and commodities liked stocks.

Baoshan Iron & Steel Co increased 4.4% to 7.35 yuan and Angang Steel surged 8% to 14.25 yuan.

Real estate companies and home builders advanced. China Vanke Company added 3.5% to 13.19 yuan and Poly Real Estate increased 3.8% to 28.96 yuan.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 18.51 or 0.19% to 9,939.93, CSI 300 index in China closed higher 71.43 or 2.26% to 3,237.90. ASX 200 index in Australia decreased 80.90 or 2.05% to 3,874.00. The KL Composite index in Malaysia closed higher 4.16 or 0.39% to 1,079.40. The Hong Kong markets were closed today.

The Kospi Index in South Korea increased 21.59 or 1.55% to close at 1,411.66.JSE Index in Indonesia increased 33.10 or 1.63% to 2,059.88. The Sensex index in India increased 151.63 or 1.05% to 14,645.47. The Thailand markets were closed today.