“Chinese stocks rose, extending the biggest one-day gain in two months, as a private survey showed manufacturing is expanding at a faster pace in March.
FAW Car Co. (000800) gained 3.2 percent after rallying by the daily 10 percent limit yesterday. Zhejiang Dahua Technology Co. and GoerTek Inc. (002241) led an advance by technology companies. The preliminary reading of a Purchasing Managers’ Index rose to 51.7, HSBC Holdings Plc and Markit Economics said, quicker than both last month’s 50.4 final reading and the 50.8 median estimate of analysts in a Bloomberg News survey.
The Shanghai Composite Index (SHCOMP) added 0.3 percent to 2,324.24 at the close. The CSI 300 Index climbed 0.2 percent to 2,614.99. The Hang Seng China Enterprises Index (HSCEI)fell 0.4 percent in Hong Kong. The Bloomberg China-US 55 Index (CH55BN) rose 2.2 percent in New York yesterday.
“The data shows the economy is on a recovery path,” said Wu Kan, a Shanghai-based fund manager at Dazhong Insurance Co., which oversees $285 million. “But there’s still concern over the strength of the recovery.”
The Shanghai index has dropped 4.5 percent from its Feb. 6 peak on concern that an economic recovery will falter as officials take steps to cool the property market and counter risks for banks from an expansion in credit. The gauge jumped 2.7 percent yesterday as Market Studies LLC’s Tom DeMark said the equity index will resume a rally to gain as much as 28 percent by September.
Thirty-day volatility in the benchmark stock index rose to the highest level since February 2012 yesterday, according to data compiled by Bloomberg. The gauge is valued at 9.5 times projected 12-month earnings, compared with the seven-year average of 15.8, according to data compiled by Bloomberg. Trading volumes were 0.5 percent higher than the 30-day average….”Comments »