China markets up on positive factory data
Chinese markets rose for the third day on Monday as positive factory activity data for July, sparked confidence in the energy, metals and logistics stocks.
The Shanghai Composite Index closed 1.48 percent higher to new a 14-month high of 3,462.59 points. Winning shares outnumbered losers by 772 to 160.
The Hang Seng Index ended 1.14 percent up at 20,807.26, the highest closing level since September 2008. The China Enterprises Index, which represents top Hong Kong-listed mainland Chinese stocks, was up 2.02 percent.
Taiwan's Taiex index dropped by 0.3 percent.
The CLSA's China Purchasing Managers' Index (PMI), a key gauge of China's manufacturing sector, rose to a one-year high in July of 52.8 from 51.8 in June.
The positive PMI also suggest that export orders rose last month. Shares in freight companies rose. China Cosco (SH:600428, HK:1919), Asia's largest Shipping line, and China Shipping Container Lines (SH:601866, HK:2866) both rose 10 percent on both the Shanghai and Hong Kong bourses. Cosco's port operating company Cosco Pacific (HK:1199) soared 17.9 percent
Metal shares gained 6.25 percent on average. Data revealed that steel price rose 11.9 percent in July, the Shanghai Securities News reported that industry profit in July may have exceeded RMB20bn. Steel reinforcing bar futures traded on the Shanghai Futures Exchange surged 4 percent on Monday.
Baoshan Iron & Steel Co. (SH:600019) gained 4.88 percent. Angang Steel Co.(SZ:000898; HK:0347), climbed 8.93 percent on Shenzhen and 7.05 percent on Hong Kong. Baotou Steel (SH:600010) and SGIS Songshan (SZ:000717) both surged to the 10 percent trading limit.
Power generators continued recent strong gains, with three companies all rising to the 10 percent trading cap, including: Jilin Power Share Co., Ltd （SZ:000875), Shanxi Zhangze Electric Power Co Ltd (SZ:000767) and Datang Intl Power Generational Co.,Ltd (SZ:601991). Sinopec (SH:600688, HK:0338), Asia's largest oil refiner, rose 10.4 percent in Hong Kong and 5 percent in Shanghai.
Paper shares surged today. Shandong Chenming Paper Holdings Limited (SZ:000488, HK:1812) rose to the 10 percent limit in Shenzhen and 8 percent in Hong Kong. Yueyang Paper Co., Ltd. (600963), Shan Dong Sun Paper Idty Jt Stk Co., Ltd (002078) Nine Dragons Paper Holdings Limited (HK:2689) rose 5.5 percent. China Sunshine Paper Hold Company Ltd. (HK:2002) rose 8 percent.
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