China stocks close higher on strong factory PMI data

BEIJING/SHANGHAI: China stocks closed higher on Tuesday, led by new energy vehicle-related and mining shares, as strong factory data reflecting a bounce-back in its economy from the coronavirus crisis lifted sentiment.

The Shanghai Composite index ended 0.44 per cent higher at 3,410.61.

The blue-chip CSI300 index was up 0.54 per cent, with financial sector sub-index gaining 0.08 per cent, the consumer staples sector rising 0.21 per cent, the real estate index falling 0.25 per cent and the healthcare sub-index sliding 0.36 per cent.

The CSI new energy vehicles index gained 3.87 per cent, while the CSI China mainland natural resource sector was up 1.43 per cent.

The smaller Shenzhen index ended up 0.67 per cent and the start-up board ChiNext Composite index was higher by 0.81 per cent.

China's factory activity expanded at the fastest clip in nearly a decade in August, bolstered by the first increase in new export orders this year, the Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) showed.

Defence-related stocks in China surged after fresh conflict reignited between Chinese and Indian troops at the border of both countries.

Shares of Chinese electric car maker BYD Co Ltd in Shenzhen rose to daily limit of 10 per cent after the company's coaches were selected for California purchasing contract.

Around the region, MSCI's Asia ex-Japan stock index was weaker by 1.26 per cent, while Japan's Nikkei index closed down 0.01 per cent.

At 0708 GMT, the yuan was quoted at 6.8229 per U.S. dollar, 0.37 per cent firmer than the previous close of 6.8483.