China stocks surge, manufacturing PMI shrinks less than expected，China's official Purchasing Managers' Index (PMI) recorded 49.8 in September, showing that while manufacturing activity shrank for a fifth straight month, it was less severe than expected.
The Caixin Manufacturing PMI, a private indicator compiled by S&P Global, showed that the index fell to 49.3 in September from 50.4 the previous month, the largest decline in 14 months.
China and Hong Kong stock markets responded well
Mainland China's CSI 300 rose 8.5% after the economic data, while Hong Kong's Hang Seng rose 3.8%. Strong performance from consumer stocks drove the stock market higher.
Notably, the Hang Seng Mainland China Property Index surged 9.7%, showing investor sentiment remains high despite slowing manufacturing growth. However, it should be noted that due to the upcoming "Golden Week" holiday, the Chinese stock market will only open on Monday this week and will be closed for a week thereafter.
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Crypto users focus on Chinese stocks again
When the Chinese stock market is soaring, we can see that many people in the currency circle who invested in cryptocurrencies and speculated on meme coins have wavered in their investment in the currency circle and returned to the familiar stock market. They believe that cryptocurrency is not promising enough and that cryptocurrency is like a dream.
Japan's Nikkei plunges on weak economic data
Meanwhile, Japan's Nikkei 225 index fell sharply, led mainly by losses in real estate stocks. Department store holding company Isetan Mitsukoshi Holdings was the biggest loser on the index, down 11%. Elsewhere, the broader Topix index fell 3.3%.
Japanese economic data further weighed on its markets. Industrial output fell 4.9% year-on-year in August, widening from a 0.4% decline the previous month. On a month-on-month basis, the decline was 3.3%, well above the 0.9% forecast by Reuters and in stark contrast to the 3.1% increase recorded in July.
Changes in Japan's political situation have also attracted investors' attention. Shigeru Ishiba won the Liberal Democratic Party election and will succeed Fumio Kishida as Prime Minister of Japan. The market is currently observing how this leadership change will affect Japan's future economic policies.
Related reading：China's central bank starts printing money! Will a large amount of RMB flow into Bitcoin transactions?
U.S. Dow Jones index hits new highs spurred by inflation data
U.S. markets were mixed overnight, with the Dow Jones Industrial Average hitting a new high on Friday, rising 0.33% to close at 42,313.00. While the S&P 500 edged down 0.13%, the Nasdaq Composite lost 0.39%.
The move comes after U.S. traders analyzed positive inflation data for August. The personal consumption expenditures (PCE) price index, the Fed's preferred inflation gauge, rose 0.1%, in line with expectations of economists polled by Dow Jones. On an annualized basis, PCE rose 2.2%, slightly below the 2.3% forecast, indicating progress in controlling inflation.
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