China shares rise on Fed update, confidence in Beijing's ability to control new virus cases

China shares rose on Tuesday, tracking gains from the global markets after the U.S. Federal Reserve widened its bond buying program, while investors showed confidence that Beijing would be able to put the latest resurgence of coronavirus cases under control.

China shares rose on Tuesday, tracking gains from the global markets after the U.S. Federal Reserve widened its bond-buying program, while investors showed confidence that Beijing would be able to put the latest resurgence of coronavirus cases under control.

** At the midday break, the Shanghai Composite index was up 0.87% at 2,915.09.

** China's blue-chip CSI300 index was up 0.89%, with its financial sector sub-index higher by 0.75%, the consumer staples sector up 0.55%, the real estate index up 0.94% and the healthcare sub-index up 1.31%.

** Chinese H-shares listed in Hong Kong rose 2.68% to 9,915.03, while the Hang Seng Index was up 2.95% at 24,478.64.

** The smaller Shenzhen index was up 0.94% and the start-up board ChiNext Composite index rose 0.97%.

** The Fed on Monday announced tweaks to its bond-buying program, widening the range of eligible assets to include all U.S. corporate bonds that satisfied certain criteria.

** After weeks with almost no new coronavirus infections, Beijing has recorded some 106 new cases since June 11.

** Investors showed confidence that Beijing is capable of putting the latest resurgence under control, as the government is now more experienced in handling the outbreak, said Zhang Qi, an analyst at Haitong Securities.

** The A-shares were also helped by reports on expected meetings between the U.S. Secretary of State Mike Pompeo and China's top diplomat, Yang Jiechi, discussing bilateral ties that have soured deeply since the start of the year.

** Hong Kong shares also rallied, as the formal start of the Fed's corporate bond-buying program boosted short-term revival of the risk-on tone, wrote Pang Jinyi, a strategist at IG.

** Around the region, MSCI's Asia ex-Japan stock index rose 2.91%, while Japan's Nikkei index was up 3.98%.

** The yuan was quoted at 7.0735 per U.S. dollar, 0.22% firmer than the previous close of 7.0888.

 

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)