JSE may benefit from upbeat Chinese data on Monday

The JSE faces firmer Asian markets on Monday morning amid upbeat data from China that indicates continued recovery for the world’s second-largest economy.

A Chinese manufacturing purchasing managers’ index was steady in August, but a gauge of non-manufacturing was at a multimonth high.

“The data further reinforces the line of thought that suggests China’s recovery remains on track, but is domestic consumption-led, with export markets still fragile as Covid-19 rampages across the globe,” said Oanda senior market analyst Jeffrey Halley in a note.

“Poor results from China’s megabanks and oil refiners last week though suggest the road will be a bumpy one,” Halley said.

In morning trade the Shanghai Composite was up 0.8% and the Hang Seng 1.8%.

Tencent, which gives direction to the JSE via Naspers, had risen 1.9%.

Gold was up 0.2% at $1,970.40 an ounce while platinum had risen 1.1% to $937.42. Brent crude was up 0.48% to $46.08 a barrel.

The rand was 0.16% firmer at R16.55 a dollar.

RCL Foods is due to report writedowns and a trading hit from Covid-19 for its year to end-June later on Monday.

Brimstone Investments, which has a majority stake in Sea Harvest, is due to report pressure from downward valuations in its six months to end-June.

Sun International is also due to report hefty writedowns in its six months to end-June, as Covid-19 batters the tourism industry and shuttered casinos.

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Source: businesslive.co.za