FX.co ★ China Stocks Gain as Traders Assess PMI Data

The Shanghai Composite rose by 0.3%, surpassing 3,870, while the Shenzhen Component made a modest climb of 0.1% to reach 13,490 on Tuesday. This growth extends the progress from the previous trading session, influenced by encouraging signs from the manufacturing sector. According to official statistics, the contraction in September was not as severe as anticipated, and a private survey highlighted robust growth, reflecting Beijing's intensified efforts to address industrial overcapacity amidst subdued domestic demand and international trade challenges. Despite these positive developments, trading volumes are expected to remain low due to the forthcoming National Day holiday, which will last for a week. The rise in Chinese stocks this week has been propelled by advancements in sectors such as artificial intelligence, semiconductors, and related technologies, which continue to draw investor interest. Notably, substantial gains were observed on Tuesday with Giga Device Semiconductor surging by 8.6%, Zhejiang Sanhua Intelligent rising by 4%, and Zhejiang Huayou Cobalt appreciating by 8.7%.