Shanghai's stock market rally marched on in the face of weak Chinese data

Stocks in Shanghai continued their resurgence even as the latest statistics showed China’s manufacturing sector weakening further.

The Caixin-Markit China flash manufacturing PMI report fell to 48.2, down from 49.4 in June. Markets had been expecting a rise to 49.7. The figure was the lowest level seen since April 2014.

That set the scene for weakness across the region’s stock markets. Then the sellers came quickly for gold, the Aussie dollar and copper.

Here is the scoreboard around the region at 6.581 am London, 2.58pm Tokyo and 3.58pm Sydney

  • Tokyo (Nikkei Average)down 0.73% to 20,538
  • Hong Kong (Hang Seng Index) down 0.94% to 25,159
  • Shanghai (Composite) up 0.57% to 4149
  • Sydney (ASX 200)down 0.44% to 5,565

Gold fell to an intraday low of $1077.90 an ounce. This is the weakest level gold has traded at since February 2010. While gold has climbed back to $1085 in afternoon trade it is at risk of closing below a very important technical level.

Gold US Dollars Monthly (Go MArkets, MT4)

Copper also came under pressure from the weak Chinese data dropping another 0.8% in Asian trade to $2.366 pound. Dalian Iron ore rallied around 0.8%.

On forex markets besides the acute weakness in the Aussie dollar the Kiwi has been dragged a little lower by the Aussie but not by too much and it’s off 0.4% to 0.6581. Euro is off a smidge at 1.0968, GBP is at 1.5506 after last night’s weak retail sales selloff and the Canadian dollar is at 1.3025.

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