FX.co ★ China Stocks Struggle for Direction Despite Strong PMI Data

The Shanghai Composite saw a modest increase of 0.1%, reaching approximately 3,448, while the Shenzhen Component fell by 0.3% to 10,430 on Tuesday. Chinese mainland stocks lacked a defined trajectory despite an unforeseen recovery in manufacturing activity. According to the latest Caixin survey, Chinese factory activity unexpectedly expanded in June, buoyed by Beijing's intensified efforts to fortify growth in the face of escalating US tariffs. In trade developments, Beijing declared on Friday the finalization of a new agreement with Washington. The terms indicate that China will review export applications for goods subject to export control regulations, while the US has committed to relaxing several stringent measures aimed at Chinese entities. The market exhibited varied performance across different sectors, with North Industries gaining 3.6% and Anhui Jianghuai up by 3.2%. Conversely, Cambricon Technologies and Shenzhen Forms experienced significant declines, falling by 6.1% and 5.8%, respectively.