China Manufacturing PMI Slumps as Trade War Threatens Recovery, Job Market

On Beijing’s policy measures, Dr. Zhe added:

“In terms of policy, the lasting impact of earlier measures that aimed to stimulate consumption needs further evaluation, and follow-up actions should be introduced based on actual conditions. More importantly, boosting domestic demand should be grounded in improving household incomes. As such, feasible and effective measures must be taken to improve the employment environment, strengthen social security, raise household disposable income, improve market expectations, and ultimately drive a continued economic recovery.”

Markets Eye Trade Talks

Markets reacted favorably to the news of Trump planning to speak with Xi Jinping this week. On Tuesday, June 3, the Hang Seng Index rallied 1.12% in morning trade. The CSI 300 and Shanghai Composite Index advanced 0.50% and 0.48%, respectively. However, YTD performance remains mixed. The Hang Seng Index has gained 16.75% YTD, while the CSI 300 is down 1.93%. The Shanghai Composite is up a modest 0.35%, outperforming the Nasdaq Composite Index (YTD: -0.35%).

Meanwhile, gold has soared 28.22% to $3,365 YTD, reflecting the impact of trade tensions on risk sentiment.