It’s another exciting trading day in Shanghai. After losing more than 13% last week, its worst weekly performance since the global financial crisis in 2008, the Shanghai Composite Index was all red this morning, its first trading day after a three-day holiday. But thanks to the Chinese media which trumpeted that the bull run is not over yet, investors scooped up shares in the afternoon session, fueling a market recovery.
Meanwhile, the manufacturing sectors in both China and Japan contracted this month, according to preliminary estimates. While it was the fourth straight month that China’s PMI data fell below the 50 reading, it was only the second time this year that Japan’s PMI slipped. But investors largely ignored the data as the Nikkei rallied to close at a new 15-year high. Read on…
China manufacturing sector slightly improves in June, but still not expanding. The preliminary reading on HSBC PMI rose to 49.6 in June from a final 49.2 in May. The reading was also above the 49.4 forecast in a Reuters survey. MarketWatch/CNBC
China shares end up after a volatile session. After losing nearly 5% in earlier session, the Shanghai Composite Index managed to erase all of that and closed up 2.2%. The rest of Asia were also up with Japan’s Nikkei Index ending the day 1.9% higher at a fresh 15 year high, while Hong Kong’s Hang Seng Index was last seen up 1%. CNBC/Financial Times (paywall)
Alibaba exiting from its U.S. subsidiary. The Chinese e-commerce giant is selling 11 Main to OpenSky through a stock swap deal. Alibaba will take a 37.6% stake in OpenSky. The management of 11 Main will be combined with that of OpenSky. The Wall Street Journal (paywall)
Japan manufacturing shrinks in June. The preliminary Markit/JMMA PMI reading was at 49.9, down from 50.9 in May and less than the 50.5 forecast. This is the second time this year that the reading showed a contraction after April’s less than stellar showing. Financial Times (paywall)
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