China manufacturing PMI at record, equities mixed – Saudi Gazette

China manufacturing PMI at record, equities mixed – Saudi Gazette

By Ipek Ozkardeskaya,

GENEVA “”

Equities in Tokyo (+2.10%) and Shanghai (+1.08%) kicked off the week on a positive note on the back of promising economic data. The Japanese GDP printed 2.2% y-o-y contraction in the second quarter versus -4.4% expected by analysts and the manufacturing PMI, 45.2, revealed a softer slowdown in activity in July.

Meanwhile, Caixin's Chinese manufacturing PMI printed 52.8 in July, the highest figure on record, surpassing the market expectation of 52.3 as post-COVID recovery in activity gained momentum.

The ASX 200 (-0.31%) lagged however despite a solid manufacturing PMI read, as energy and mining stocks fell on softer oil and commodity prices. Elsewhere, losses were dominant. Stocks in Philippines led losses with a 3.58% drop on Monday as authorities ordered stricter lockdown in Manila.

European and US stock markets are poised for a flat start to the week, as investors await manufacturing and services PMI on Monday and Wednesday, the Bank of England (BoE) rate decision on Thursday and the US jobs data on Friday.

Strong rebound in Western economic activity should better the investor mood this week, even though the short-term direction will likely remain blurred by the persistent COVID threat and global trade tensions. The US is expected