FX.co ★ Chinese Stocks Rise Despite Weak Data

On Monday, the Shanghai Composite index advanced by 0.26% to approximately 3,900, while the Shenzhen Component climbed 0.9% to 13,100. Both indices reached over a one-week high as investor optimism regarding a potential rate cut by the US Federal Reserve overshadowed weaker factory activity data from China. A recent private survey indicated that China's manufacturing sector experienced a contraction in November, highlighting persistent challenges in domestic demand. This comes after official data released on Sunday pointed to another month of lackluster manufacturing performance and a cooling services sector, following an earlier post-holiday momentum. Nevertheless, the growing anticipation of a rate reduction in the US buoyed market sentiment. Investors are now turning their attention to upcoming comments from Federal Reserve Chair Jerome Powell and the potential nomination of a dovish successor. Among the top gainers were Zhongji Innolight, which increased by 3.7%, Eoptolink Technology by 1.5%, Contemporary Amperex by 0.8%, Gree Electric by 0.8%, NAURA Technology by 0.6%, and BYD by 0.6%.