Asian Pacific stocks are staged for a positive week. Hong Kong’s Hang Seng index edged more than 0.90% higher. Mainland Chinese stocks, Shanghai Composite and Shenzhen Component, also gained after the release of positive PPI and CPI data. Japan’s Nikkei 225 index rose by more than 90 points while Australia’s ASX 200 index was almost flat.
China’s Economic Concerns
According to data published by the National Bureau of Statistics of China, the country’s Producer Price Index (PPI) jumped. China’s PPI for July advanced 9.0% YoY climbing from the previous 8.8%. Analysts expected the numbers to remain unchanged at 8.8%.
According to the NBS, the mining and energy sectors were the largest contributors to the growth in the PPI. They boosted nearly 7.5% of the rise in the factory gate prices. According to Tian Yun, former vice director of the Beijing Economic Operation Association, the growth in PPI is expected to ease to 8% in the third quarter and 7%in the fourth quarter.
China’s key inflation gauge, the Consumer Price Index (CPI) rose 0.3% MoM in July and 1.0% YoY. Market supply and demand remained unchanged in July as the government struggled to curb the coronavirus spread and fight the floods.
Food prices edged down 3.7% year-on-year in July but were up 0.2% from June. The non-food price soared 2.1% YoY up 0.4% from June. The prices drove up the CPI by about 1.7% in July. With the resurgence of coronavirus alongside the Delta variant, the economy is still struggling to recover.
Hang Seng Movers
The best performer in the Hang Seng index was Haidilao International Holding Limited. Haidilao is the biggest hotpot chain in China. The restaurant company gained more than 5.61% in its stock earnings.
China Resources Land gained 5.00% in its stock price. China Resources Land is a residential property managers group.
Meituan inched 4.50% higher on Monday despite the company’s fine. China’s Antitrust regulator recently announced its plans to fine Meituan with about $1 billion for allegedly abusing its dominant market position.
Among the laggards in the Hang Seng index include ANTA Sports and Alibaba. ANTA Sports is a Chinese sports equipment multinational corporation. The company slipped 3.63% in Monday’s trading session.
Alibaba was down 3.00% as China’s crackdown widens on the tech company. Alibaba recently warned investors of higher taxes amid tech crackdown concerns.