South Africa's rand, stocks firm on Chinese data

JOHANNESBURG: South Africa's rand strengthened on Wednesday, stretching gains into a second session as upbeat manufacturing data from China helped lift demand for emerging currencies. Stocks were firmer, supported by resources and e-commerce firm Naspers.

By 1615 GMT the rand had gained 0.35 percent to 13.44 per dollar, edging towards technical resistance at 13.4100, as momentum swung again following a sharp fall in the beginning of the week over rumours of a cabinet reshuffle.

With the US Federal Reserve due to announce its policy decision later in the session and the dollar hovering around 7-week lows as the Donald Trump administration talked down the greenback, investors looked to the global economy for direction.

Data from China showed the manufacturing sector of the world's no.2 economy expanded for the sixth month in a row in January, boosting emerging currencies that rely on the Asian giant for export revenues.

On the bourse, resource stocks were also supported by the Chinese data, with mining firms Anglo American and BHP Billiton both advancing.

The benchmark Top-40 index was up 0.6 percent to 46,213 points and likewise the broader All-share index rose 0.6 percent to 53,104.

Anglo American and BHP Billiton gained 2.1 percent to 235.14 rand and 1.3 percent to 247.70 rand respectively.

"It was more resources again today with the likes of Anglogold (Ashanti) up overnight in New York the start of it," said Independent Securities trader Ryan Woods.

"A lot of it has to do with what's going on in America and the statements Trump is making.

It's the age-old flight to quality," said Woods. Anglogold was flat on 169.87 rand in Johannesburg, but other precious metals producers firmed, with Impala Platinum taking the lead, rising 2 percent to 54.49 rand.

E-commerce and media firm Naspers gained 2.9 percent to 2,200.00 rand after Deutchse Bank raised its target price for the share to 3,245.00 rand from 3,078 rand.

Bonds were flat, with the yield on the paper due 2026 adding 0.5 basis points to 8.865 percent.