China stocks edge up 0.6 percent

China's stocks edged up yesterday after plunging more than 6 percent to a three-month low Monday, led by a technical rebound on financial and property shares, as positive manufacturing data trained some of the focus on the mainland's still robust economic recovery.

The Shanghai Composite Index was up 15.98 points at 2,683.72 points. The Shenzhen Component Index closed at 10,614.28 points, up 29.2 points from the previous close.

Combined turnover shrank to 161.03 billion yuan ($23.56 billion) down from 196 billion yuan ($28.68 billion) on the previous trading day, as investors remained cautious over concerns about tightened liquidity.

Shanghai Pudong Development Bank rose 3.92 percent to 18.54 yuan ($2.71) after Shanghai Securities News cited a bank official denying a report that the lender had suspended lending in August.

The property sector was strong with China Vanke gaining 5.21 percent, while the nonferrous metal sector remained weak, with Yunnan Copper tumbling 6.89 percent to 25 yuan ($3.66).

"Some technical buying has emerged after yesterday's steep fall, but the rebound apparently lacks momentum," said analyst Li Wenhui from Huatai Securities in Nanjing.

Also yesterday, China posted its official purchasing managers' index for August, which inched up to a 16-month high of 54.0, up from July's reading of 53.3, indicating an expansion of activity in the manufacturing sector.
 

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