China’s stock markets gained on Wednesday, despite weak industry data from the country. According to market researchers Caixin and Markit, Chinese manufacturing activity contracted in August for the first time since April 2020.
Figures from the Chinese government previously indicated that industrial growth slowed again last month due to supply problems and higher raw material prices. The weak data, however, give hope for more support measures from Beijing for the economy.
The Shanghai stock exchange traded 0.7 percent in the plus, and the Hang Seng index in Hong Kong climbed 0.6 percent. The Nikkei in Tokyo closed 1.3 percent higher at 28,451.02 points. Speculation that Japanese Prime Minister Yoshihide Suga is likely to win the upcoming elections for the leadership of the ruling Liberal Democratic Party (LDP) party has reassured investors.
Komatsu was among the strongest risers in the Nikkei, with a gain of 5 percent. According to Bloomberg news agency, the share of the construction equipment manufacturer has been bought almost daily by the investment fund of the American investor Cathie Wood since mid-August. Toyota gained 0.7 percent, returning to pre-market levels following the automaker’s announcement to cut production by 40 percent in September.
Suzuki dropped slightly. Maruti Suzuki India, India’s largest automaker, thinks its production could shrink by 40 percent next month due to the global chip shortage in the auto sector. A factory that makes cars for the Japanese cooperation partner Suzuki will also be affected. Murati thinks the chip shortages could last for another year.
The All Ordinaries in Sydney lagged with a minus of 0.1 percent. As a result, Australian economic growth fell to 0.7 percent in the second quarter, from 1.9 percent in the first quarter. In India, where the economy recovered more than 20 percent in the second quarter after contracting more than 24 percent in the same period a year ago, the stock market touched a new record level.