China’s stock market reopened with a bang after an eight-day holiday as a private economic report signaled a sustained recovery in the nation’s services industry. Hong Kong stocks were rangebound amid concerns about new measures to contain local coronavirus cases.
The CSI300 index, which tracks the performances on Shanghai and Shenzhen bourses, gained as much as 1.9 per cent to 4,672.41 from the level on September 30. The gauge has risen by more than 14 per cent so far this year. The Hang Seng Index was little changed at 24,225.03, and was on course for a weekly gain.
The China Caixin/Markit services PMI index rose to 54.8 in September versus 54 in the preceding month, today’s report showed. The Composite PMI index, however, eased to 54.5 versus 55.1 previously. Readings above 50 indicate expansion.
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This was above the median expectation in a Bloomberg survey for a reading of 54.3, with the rate of expansion the sharpest for three months and among the quickest recorded over the past decade.
Zhejiang Sanhua Intelligent Controls, which manufactures appliance parts, led gains among CSI300 members with a 9.2 per cent rally.
Shares of Beijing Yanjing Brewery, one of China’s largest breweries and a subsidiary of municipal government-backed conglomerate Beijing Enterprises Holdings, fell as much as 5 per cent to 8.01 yuan. The company said its chairman had been detained by mainland Chinese authorities to assist an official investigation, in a filing to the Shenzhen exchange on Thursday night.
In Hong Kong, health officials warned of an alarming rebound in Covid-19 infections, saying the number of