China shares rise as stronger PMI data boosts confidence

China's stock markets ended higher on Tuesday after better-than-expected PMI data strengthened confidence in the country's economic recovery. The Shanghai Composite rose 0.5% to close at 4,094, while the Shenzhen Component gained 2.48% to 16,206.

Official data showed that China's Composite PMI rose to a six-month high of 50.6 in June from 50.5 in May. Manufacturing PMI improved to 50.3, beating market expectations, supported by strong demand for high-tech exports despite trade disruptions linked to tensions in the Middle East. The Non-Manufacturing PMI also came in above forecasts, indicating that business activity in the services sector remained stable.

Technology stocks led the market higher as investors returned to AI-related companies. Cambricon Technologies, Zhongji Innolight, Eoptolink Technology, and NAURA Technology were among the top gainers.

For the month of June, the Shanghai Composite rose 0.63%, while the Shenzhen Component posted a stronger gain of 4.05%.

Powered by Capital Market - Live News