Chinese stocks soar as manufacturing shrinks less than expected, crypto-dwellers look to A-shares

Table of Contents [China's stock market surges, manufacturing PMI contracts less than expected] [China and Hong Kong stock markets react well] [Crypto enthusiasts turn to A-shares] [Japan's Nikkei index plunges due to weak economic data] [The Dow Jones index in the US hits a new high on the back of inflation data] China's stock market surges, manufacturing PMI contracts less than expected China's official September Purchasing Managers' Index (PMI) recorded 49.8, indicating that although manufacturing activity has contracted for five consecutive months, the extent was not as severe as expected. The private indicator compiled by S&P Global - the Caixin Manufacturing PMI - showed that the index fell from 50.4 last month to 49.3 in September, the largest decline in 14 months. China and Hong Kong stock markets react well After the economic data was released, the CSI 300 index in mainland China rose 8.5%, while the Hang Seng index in Hong Kong rose 3.8%. Consumer stocks performed strongly, driving the market higher. It is worth noting that the Hang Seng China Enterprises Index, which tracks mainland Chinese property stocks, surged 9.7%, indicating that investor sentiment remains high, despite the slowdown in manufacturing growth. However, it should be noted that due to the upcoming "Golden Week" holiday, the Chinese stock market will only be open on Monday this week and will be closed for the rest of the week. Crypto enthusiasts turn to A-shares As the Chinese stock market soared, many crypto investors and meme coin enthusiasts in the crypto community have become disillusioned with crypto investments and have returned to the familiar stock market, believing that cryptocurrencies are not performing well enough and are like a dream. Japan's Nikkei index plunges due to weak economic data At the same time, the Nikkei 225 index in Japan fell sharply, driven mainly by losses in the real estate sector. Isetan Mitsukoshi Holdings, a department store holding company, became the biggest decliner in the index, falling 11%. The broader Topix index also fell 3.3%. Japan's economic data has put further pressure on its market. Industrial output fell 4.9% year-on-year in August, a larger decline than the 0.4% drop in the previous month. On a monthly basis, the decline was 3.3%, far exceeding the Reuters forecast of 0.9% and in stark contrast to the 3.1% increase recorded in July. Changes in Japan's political landscape have also caught investors' attention. Taro Aso's victory in the LDP election means he will succeed Fumio Kishida as Japan's prime minister, and the market is currently observing how this leadership change will affect Japan's future economic policies. The Dow Jones index in the US hits a new high on the back of inflation data The US market had a mixed performance overnight, with the Dow Jones Industrial Average hitting a new high last Friday, rising 0.33% to close at 42,313.00 points. However, the S&P 500 index fell slightly by 0.13%, and the Nasdaq Composite index fell 0.39%. This volatility occurred after US traders analyzed the positive inflation data for August. The Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge, rose 0.1%, in line with the economists surveyed by Dow Jones. Calculated on an annualized basis, PCE rose 2.2%, slightly lower than the forecast of 2.3%, indicating progress in controlling inflation.