FX.co ★ China Stocks Rise on Upbeat PMI Data

The Shanghai Composite index rose by 0.3%, surpassing 3,870, while the Shenzhen Component increased by 0.2% to reach 12,720 on Monday. This marks the third consecutive session of gains, buoyed by unexpectedly strong manufacturing data. A private survey revealed that factory activity rebounded in August, surpassing expectations and showing growth as both new orders and export business picked up. However, official figures released over the weekend indicated a contraction in factory activity for the fifth month in a row, though there was slight growth in the services sector. On the geopolitical stage, Chinese President Xi Jinping and Indian Prime Minister Narendra Modi committed on Sunday to resolve border disputes and enhance cooperation ahead of a regional summit in Tianjin. In the corporate arena, shares of BYD decreased by 4% following a report of the company's quarterly profit decline, attributed to increased price competition in the domestic electric vehicle market.