China’s Stocks Rise as Manufacturing Data Beats EstimatesWeiyi Lim
Chinese stocks climbed the most in two weeks as a gauge of manufacturing in the world’s second-largest economy rose to the highest level in six months.
GoerTek Inc., an Apple Inc. supplier, increased the most in a month as analysts predicted record opening-weekend sales for the new iPhones. Zoomlion Heavy Industry Science & Technology Co. and Yanzhou Coal Mining Co. posted the biggest gains in almost two weeks. Shanghai Pudong Road & Bridge Construction Co. advanced 4.1 percent after winning a project worth 216 million yuan ($35 million).
The Shanghai Composite Index added 1.3 percent to 2,221.04 at the close, the biggest gain since Sept. 9, as the bourse resumed trading after a two-day holiday last week. The preliminary reading of 51.2 for a Purchasing Managers’ Index compiled by HSBC Holdings Plc and Markit Economics compared with the median estimate of 50.9 in a Bloomberg News survey. The Shanghai gauge has climbed 14 percent from this year’s closing low on June 27 as data from exports to industrial output showed economic growth is accelerating.
The PMI reading “clearly gave the market support,” Gerry Alfonso, a trader at Shenyin & Wanguo Securities Co. in Shanghai, said by e-mail. “The economic data coming from China during the last few months has given investors confidence.”
The Shanghai measure is valued at 8.9 times projected earnings for the next 12 months, compared with the five-year average of 12.6 times, according to data compiled by Bloomberg. Trading volumes were 5.1 percent below the 30-day average today.
The Hang Seng China Enterprises Index of mainland companies in Hong Kong slipped 0.7 percent. The city’s bourse was closed on Sept. 20 for a holiday and canceled its morning session today because of Typhoon Usagi, which killed at least 20 people in southern China after making landfall. The MSCI Asia Pacific Index has climbed 1.7 percent since Sept. 18 after the Federal Reserve maintained its $85 billion monthly bond-buying program.
BlackRock Inc., the world’s largest asset manager, expects China’s economy to “surprise on the upside” for the rest of the year, after the cost of insuring the nation’s debt fell the most in Asia this quarter. The Shanghai Composite has climbed 12 percent since the end of June, compared with a 7.7 percent gain in the MSCI Emerging Markets Index.
Data released earlier this month showed China’s industrial output grew at a faster pace in August and the broadest measure of new credit almost doubled from the previous month to 1.57 trillion yuan ($257 billion).
Zoomlion, the nation’s second-largest construction equipment maker, advanced 1.5 percent today while Yanzhou Coal gained 1.6 percent.
“Stocks are rallying because liquidity is improving and growth is continuing,” Hao Hong, a strategist at Bank of Communications Co., said in a Bloomberg television interview in Shanghai.
GoerTek jumped 6.2 percent, the most since Aug. 8. Analysts predicted Apple will sell 6 million to 7.75 million iPhones over the weekend. Shares of suppliers will probably rally if shipments are higher than in 2012, KGI Securities Co. said.
The CSI 300 Index increased 1.6 percent and the ChiNext Index of smaller companies added 2.8 percent. The Bloomberg China-US Equity Index of the most-traded Chinese stocks in the U.S. dropped 1.5 percent on Sept. 20, paring its weekly gain to 0.8 percent.