Mainland Chinese stocks rebounded on Thursday after two consecutive sessions of losses, as investors looked ahead to key US employment data for clues on the Federal Reserve’s interest-rate outlook while also awaiting fresh domestic economic indicators, according to a report by Reuters.
At the midday break, the Shanghai Composite was up 0.4%, while the blue-chip CSI300 index gained 0.5%. The Shenzhen index rose 0.3%, and the ChiNext Composite advanced 0.4%. Shanghai’s technology-focused STAR50 index was largely unchanged.
Property stocks were among the strongest performers in morning trading. The sector sub-index jumped 4.9%, recovering after three consecutive sessions of steep declines.
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In Hong Kong, the benchmark Hang Seng Index was broadly flat at 25,317.49 points, while the Hang Seng Tech Index slipped 0.6%.
US Jobs Data in Focus
Investors are turning their attention to Friday’s US nonfarm payrolls report, which is expected to provide fresh insight into the strength of the US labour market and the Federal Reserve’s policy trajectory.
Analysts are forecasting an increase of 56,000 jobs after the US economy unexpectedly shed 23,000 jobs in July. The unemployment rate is expected to remain at 4.1%.
Financial markets are currently pricing in a 61% probability of a Federal Reserve rate hike in September, according to market pricing. Any signs of persistent economic strength or inflationary pressure could reinforce expectations for tighter US monetary policy, potentially affecting global asset prices and capital flows.
China Economic Data Under Watch
Investors are also awaiting a series of August economic indicators from China, with markets looking for evidence that recent policy support is beginning to translate into stronger economic activity.
Reuters reported that Citi analysts expect economic activity to have remained subdued in August, while the key question for markets is whether growth begins to recover in September following recent policy measures.
China has been seeking to support domestic demand and stabilize growth amid persistent weakness in parts of the economy, particularly the property sector.
Central Bank Signals Focus on Domestic Demand
Meanwhile, China’s central bank governor told a G20 meeting of finance ministers and central bank governors that Beijing does not deliberately seek to maintain a trade surplus, according to a statement from the People’s Bank of China released on Wednesday.
The governor also reiterated China’s commitment to boosting domestic demand and maintaining a high degree of economic openness.
The comments come as China faces increased scrutiny over its trade balance and export strength, while policymakers continue to emphasize domestic consumption as an important driver of future growth.
For investors, the combination of US labour-market data, expectations for Federal Reserve policy and China’s upcoming economic indicators is likely to set the tone for Asian markets in the near term.
