Market Overview

China stocks jump 2%; Afterpay shares in Australia surge after Square deal announcement

China stocks jump 2%; Afterpay shares in Australia surge after Square deal announcement

Shares in major Asia-Pacific markets rose on Monday, as data showed Chinese manufacturing activity growth slowed in July. Shares of Afterpay in Australia soared 18.77% on Monday after U.S. fintech firm Square announced it had agreed to buy the buy now, pay later giant. The broader S&P/ASX 200 in Australia also saw robust gains as it climbed 1.34% to finish the trading day at 7,491.40.

Elsewhere, mainland Chinese stocks jumped on the day, with the Shanghai composite up 1.97% to 3,464.29 and the Shenzhen component advancing 2.245% to 14,798.16. Hong Kong’s Hang Seng index closed 1.06% higher at 26,235.80. Chinese electric vehicle maker Xpeng saw its Hong Kong-listed shares jump 10.66% after the firm announced Monday a record monthly high for vehicles delivered in July. Shares of HSBC in Hong Kong rose 0.93% after the lender announced first-half 2021 earnings that beat expectations and announced its second dividend payout since the Covid-19 pandemic.

The Caixin/Markit manufacturing Purchasing Managers’ Index for July released Monday came in at 50.3, much lower than expectations by analysts in a Reuters poll for a reading of 51.1. The Caixin manufacturing PMI figure had come in at 51.3 in June. China’s official manufacturing PMI released over the weekend also showed factory activity growth slowing in July, with the figure for the month coming in at 50.4 versus June’s reading of 50.9.

China stocks jump 2%; Afterpay shares in Australia surge after Square deal announcement, CNBC, Aug 2

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