NIO Stock News: Nio Inc soars higher as economic data raises Chinese stocks

NYSE: NIO gained 8.37% during Friday’s trading session.
Chinese economic data shows production costs are on the decline.
China’s EV giant BYD makes plans for a new production site in Thailand.

Stocks Reporter FXStreet

NYSE: NIO closed out the week on a strong note as the Chinese EV maker managed to post a near 4.0% gain over the past five trading sessions. On Friday, shares of Nio jumped higher by 8.37% and closed the trading week at a price of $19.16. Stocks rallied for the third straight day and snapped the three-week losing streak following the Jackson Hole Symposium. All three major averages closed higher on Friday. Overall, the Dow Jones added 377 basis points, the S&P 500 gained 1.53%, and the NASDAQ rose by 2.11% during the session.

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What had Nio surging by more than 10% during intraday trading? Chinese economic data revealed consumer prices and producer costs both slowed during the month of August. The August CPI rose by 2.5%, which was slower than the 2.7% for July and well below the 2.8% that was widely forecasted by analysts. The results were the first sign that the Chinese economy could be recovering despite the ongoing COVID lockdowns. The data sent the Hang Seng index in Hong Kong higher during Asian trading as well. Nio in particular had mentioned that higher costs were eating into their margins in the previous quarter, so lower production costs will likely lead to higher profits.

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China’s EV leader BYD has made plans for its first production facility outside of China. The company announced it will build a location in Thailand with production to begin as early as 2024. The move is the latest in BYD’s global expansion that will see the company debut EVs in markets like Japan and Germany in the near future.

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