Sector movers: Industrial miners pace gains at the start of Q3

Industrial miners paced gains on the first day of the third quarter after a private sector survey for factory activity in the People's Republic of China printed ahead of forecasts.

Caixin's manufacturing purchasing managers' survey came in at 50.5 for the month of June, down from a reading of 50.9 for May and the consensus forecast of 50.0.

"The official index has been more sensitive to recent volatility, such as the disruption during the Covid exit waves, and has a broader geographical coverage, by contrast to the Caixin index’s heavier weighting of light industry, exports and the private sector," said Duncan Wrigley, chief China+ economist at Pantheon Macroeconomics.

"In short, the gloomier reading in the official index is probably closer to reality."

For their part, analysts at SP Angel argued that slowing factory activity was buttressing expectations for a fresh round of economic stimulus "following disappointment so far".

They also noted a statement released by the People's Bank of China at the weekend in which it said that monetary policy would be conducted in a "precise but forceful manner".

"The Chinese equity markets have rallied 2.5%, suggesting that investors expect stimulus to be more consumption-targeted as opposed to historical construction-focused measures."

Top performing sectors so far today

Industrial Metals & Mining 6,499.19 +2.98%

Oil, Gas and Coal 8,168.73 +1.97%

Tobacco 29,133.60 +1.65%

Real Estate Investment Trusts 2,037.99 +1.49%

Precious Metals and Mining 10,305.05 +1.42%

Bottom performing sectors so far today

Pharmaceuticals & Biotechnology 19,869.47 -5.37%

Automobiles & Parts 1,899.94 -2.04%

Electronic & Electrical Equipment 9,757.80 -1.48%

Retailers 3,815.52 -1.23%

Investment Banking and Brokerage Services 13,141.06 -1.05%