Chinese shares boosted by rosy expectations
Chinese shares jumped on Friday thanks to signs of increased factory activity and expectations of a long-term trade deal between the United States and China.
Home appliance, rare earth and 5G shares led the surge on Friday.
The Shanghai Composite Index closed higher by 0.99 percent to 2,958.20 points. The Shenzhen Component Index closed 1.73 percent higher at 9,802.33 points, while the ChiNext gained 0.94 percent.
Combined trading volume on the two bourses was 434.93 billion yuan (US$62.1 billion), compared with 451.3 billion yuan the previous trading day.
On Friday, the Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) came in at 51.7 for the month of October, as production and new orders both expanded at a faster pace. PMI readings above 50 indicate expansion, while those below that level signal contraction.
Home appliance and 5G shares led the day's gains, as the upcoming November 11 online shopping festival is expected to give them a boost.
Gree Electric Appliances jumped 8.65 percent to 63.78 yuan while Midea Group surged 6.11 percent to close at 58.89 yuan.
Meanwhile, amidst a slowdown in corporate profit growth and monetary easing, UBS holds a “neutral” rating on Chinese shares for the future, the investment banker said in a report on Friday.