Stocks, Investors, and Chinese Manufacturing activity
Stocks in main Asia-Pacific markets were mostly higher on June 1, as investors reacted to the release of a private survey regarding Chinese manufacturing activity last month. Mainland Chinese stocks closed higher, with the Shanghai composite up 0.26% to 3,624.71. Meanwhile, the Shenzhen component added 0.256% to 15,034.78.
In Hong Kong, the Hang Seng index rose about 0.9%, as of its final hour of trading.
The Caixin/Markit manufacturing Purchasing Managers’ Index (PMI) for May came in at 52.0, and it surpassed expectations. The figure for the last month also compared against April’s reading of 51.9.
PMI readings above 50 represent expansion while the results below that level signify contraction. PMI readings are sequential as well as constitute month-on-month.
Stocks and coronavirus pandemic in Malaysia
In Japan, the Nikkei 225 dropped 0.16% to end its trading day at 28,814.34. The Topix index gained 0.17% to close at 1,926.18.
South Korea’s Kospi added 0.56% to finish its trading day at 3,221.87.
Shares in Australia declined, with the S&P/ASX 200 dropping 0.27% on the day to 7,142.60. On Tuesday, the Reserve Bank of Australia announced its decision to hold steady on its current policy settings, including keeping the cash rate at 0.1%.
The FTSE Bursa Malaysia KLCI Index hovered above the flatline, as of 3:22 p.m. local time in Malaysia. One day earlier, Malaysia’s prime minister Muhyiddin Yassin announced an additional 40 billion ringgit (about $9.7 billion) stimulus package. He unveiled a multi-billion-dollar plan just hours before stricter lockdown measures to curb the Covid spread in the county were set to kick in.
He unveiled the package – named Strategic Program to Empower the People and Economy Plus. The purpose of that package is to increase the capacity of public hospitals to treat Covid-19 patients. Another purpose is to support the continuity of businesses and to help the people.
The government plans to spend RM450 million to increase the capacity of beds in intensive care units and other expenses. The country’s government will spend RM550 million to cover the expenses related to increased operating and management costs in dealing with the health crisis. He also stated that financial aid will be distributed to lower-income households earning less than RM5,000 per month. He also announced an RM500 one-off special cash aid for 17,000 tour guides, 40,000 taxi drivers, 11,000 school bus drivers, 4,000 express bus drivers, and 62,000 e-hailing drivers.
