Chinese stocks climbed in New York
, paring the benchmark index’s first monthly drop since July, on prospects expansion in manufacturing will add to signs of a
recovery in the world’s second-largest economy.
The Bloomberg China-US Equity Index
of the most-traded Chinese shares in the U.S. gained 0.5 percent to 92.77 by 12:37 p.m., trimming its November loss to 1.2 percent. Youku Tudou Inc., China’s biggest online video company, jumped the most in two weeks after reporting third-quarter sales that beat
analysts’ estimates. Electricity producer Huaneng Power
International Inc. surged to a four-year high on falling coal prices, while solar company Yingli Green Energy Holding Co.
capped a 43 percent weekly advance, the most since 2009.
China’s purchasing managers’
index rose to 50.8 in October, increasing for a second month, according to the median forecast of 28 economists ahead of data due out today. The data may be another signal China is emerging from its seven-quarter
slowdown, after factory production and retail sales picked up last month and inflation slowed. Confidence in China’s economy is at the highest level in more than a year on optimism the
nation’s new incoming leaders will provide a boost to the
financial climate, according to a Bloomberg investor poll.
“The November PMI should continue to strengthen, helping
boost sentiment toward Chinese stocks,” Michael Ding, lead
manager of the China Region Fund at U.S. Global Investors Inc., which oversees $2.2 billion, said by phone from San Antonio, Texas yesterday. “People are trying to interpret the latest
public activities of China’s new leadership, which seem to
indicate they have pro-growth policies.”
The iShares FTSE China 25 Index Fund, the biggest Chinese
exchange-traded fund in the U.S., jumped 0.9 percent to $37.17, leaving the ETF up 1 percent for November. The Standard & Poor’s 500 Index slipped 0.2 percent to 1,413.19, trimming a 0.3
percent advance in the week, as lawmakers negotiate over the U.S. federal budget.
The Hang Seng China Enterprises Index rallied 1.3 percent
yesterday to gain 0.4 percent in the month, while the Shanghai Composite Index climbed for the first time in five days, adding 0.9 percent. The gauge of domestic Chinese stocks lost 4.3
percent in November.
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