The Caixin PMI Beats Forecast in China

This morning Asian markets gained after China released its private Caixin manufacturing survey which showed a better-than-expected gain for December.

In mainland China, markets started the New Year on solid footing. The Shanghai Composite rose 0.15 percent and the smaller Shenzhen Composite was up 0.31 percent. In 2016 the Shanghai fell 12.3 percent which was its worst performing year since 2011.

In Hong Kong, the Hang Seng Composite Index slipped nearly 0.4 percent this morning. Hong Kong’s benchmark stock index had a tough year in 2016. Shares struggled to close in positive territory as they were up a mere 0.39 percent at the close of the year

The Caixin Shows Good Growth

In economic news this morning, China released its private Caixin manufacturing purchasing managers’ index or PMI. This number printed at 51.9 in December and up from 50.9 printed in November. Forecasts had called for a print of 50.7. Anything above 50 shows expansion. The private number comes after the official state number which fell to 51.4 in December. Just below expectations.

In Australia, the ASX 200 surged over one percent as there were broad gains through all the sub sectors. Only the gold sub-index was weaker as it tumbled 2.3 percent. The Australian benchmark is now at a 16 month high and close up just under seven percent in 2016. Its best year since 2013.

In corporate news, out of the Down Under, shares of the corporate lender ANZ were up 1.6 percent after the bank announced it reached a deal to sell a twenty percent stake in the Shanghai Rural Commercial Bank. ANZ will making this sale to COSCO Shipping and Shanghai Sino-Poland Enterprise Management and Development.