China stock indices rise on strong manufacturing data

Yahoo Finance’s Ines Ferre joins the Live show to discuss the rise in stock for Chinese ADRs following strong manufacturing data.

Video transcript

- All right. Let's take a closer look at the markets as we approach the halfway point of the first trading day in March. Now, early hopes that investors could shake off a downer February have been tempered by some hawkish Fed comments. This as investors process better than expected economic data from China. Yahoo Finance's Ines Ferre has the full picture. Ines, a full picture, indeed.

INES FERRE: Yeah, that's right, Rachelle. So let's take a look first at that China data that you were mentioning. Of course, with the COVID lockdowns gone in China, you have now their manufacturing data that has come out that has really soared, posting its biggest improvement in more than 10 years. Purchasing Managers' Index rose to its highest level since April of 2012. And take a look at the Chinese ADRs that are trading. Right now, up, a big rally when you look at those.

But if you just take a look at the world market, I want to point to you the Hong Kong, the Hang Seng up 4.2%. Also, this China data bouying some of the other markets around the world in Europe as well. Here in the US, a mixed picture, as you were just mentioning, because of those hawkish comments from two Fed members, one of them being a voting member on the FOMC, Neel Kashkari, Minneapolis Fed president, saying basically that he is open to the idea of a 25 basis points or 50 basis points for its next meeting in March.

The FOMC will be meeting this March. So the markets really all about that FOMC meeting in March. And will it be 25 basis point rate hike? That's what the market is expecting. But these comments from Kashkari really kind of jolting the markets earlier today, as we saw the averages going lower. You've got the NASDAQ composite. It had been slightly in the green earlier. Right now, it's down about 4/10 of a percent.

And then just checking out the 10-year Treasury note. That yield is at 4%. You did see the US dollar index going a little bit higher earlier. And so that put pressure on stocks as well. But, certainly, the Fed comments, Fed members, their comments, and what they plan to do at the next Fed meeting, that's what the market is focused on right now, Rachelle.

- Indeed. Well, thank you for that update. Ines Ferre there for us.