Left Menu
Development News Edition

China stocks snap losing streak as yuan finds footing

Reuters | Shanghai | Updated: 08-08-2019 10:07 IST | Created: 08-08-2019 10:05 IST
China stocks snap losing streak as yuan finds footing
Image Credit: Pixabay

China's stock market is poised for its first day of gains in over a week as the yuan steadied and lifted sentiment, easing fears of a full scale Sino-U.S. currency war. At the midday break, the Shanghai Composite index was up 0.9% at 2,793.92, while the blue-chip CSI300 index was up 1.2%. Plagued by trade war escalation, the two indexes ended lower in the past six trading days.

CSI300's financial sector sub-index rose 1.1%, the consumer staples sector went up 1.7%, the real estate index climbed 0.3% and the healthcare sub-index was up 1.6%. The smaller Shenzhen index was up 0.9% and the start-up board ChiNext Composite index was higher by 1.4%. China's central bank on Thursday set its official yuan midpoint below the key 7 to the dollar threshold for the first time since the 2008 global financial crisis. Still, the yuan fixing was stronger than markets had feared and supported Asian equities broadly. State banks were also seen supporting the currency earlier this week.

The yuan was quoted at 7.0422 per U.S. dollar at 0357 GMT, up almost 0.3% firmer than the previous close. China's exports unexpectedly rose in July, growing 3.3% from a year earlier, customs data showed on Thursday, despite mounting U.S. trade pressure. Analysts polled by Reuters had expected exports would fall 2.0%, after a 1.3% decline in June. Trade risks still persisted. U.S. President Donald Trump reiterated on Wednesday that his trade policies on China would ultimately benefit the American economy, even as Beijing signalled it could strike back by curbing sales of rare earths.

MSCI confirmed https://www.msci.com/eqb/pressreleases/archive/MSCI_Aug19_QIRPR.pdf on Wednesday it had gone ahead with further inclusion of Chinese A-shares in its Emerging Market Index. The index provider said in March it would quadruple A-shares' weighting, carried out in three steps.

With economic slowdown still hurting corporate earnings growth, Chinese shares will remain under pressure, China Post Securities' analysts said in a note on Thursday. "The market has limited momentum for recovery, and could break a new bottom in the medium term," they said. In Hong Kong, Chinese H-shares rose 0.8%, while the Hang Seng Index was up 0.7% at 26,170.41. Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.8% while Japan's Nikkei index was up 0.6%. The Shanghai stock index is below its 50-day moving average and below its 200-day moving average.

Also Read: UPDATE 3-Hong Kong facing worst crisis since handover -senior China official


TRENDING

OPINION / BLOG / INTERVIEW

How UK’s 'best prepared' healthcare system failed to gauge COVID-19

The UK is proud of their public health system and its unlike any other country as around 90 percent of British public supports the founding principles of National Health Service. But without accurate data being available to stakeholders in ...

Poor on IHR capacity progress in 2019, WHO says Cambodia tops COVID-19 response

Despite being in proximity to Hubei, the original epicenter of COVID-19 pandemic, Cambodia has reported just 226 confirmed cases and zero deaths. After seeing the data, WHO appreciated Cambodias healthcare information system but experts dou...

Loopholes in Healthcare Information System may have failed Singapore COVID-19 model

In the initial days of the COVID-19 outbreak, Singapore was in the limelight for its effective healthcare system and pandemic response plan. However, Singapore has now joined the list of the worst-hit nations and the situation is even worse...

Australia's COVID-19 response: Digital infrastructure of help but implementation remains a challenge

Australias ongoing plans to upgrade its health information system helped by the Digital Health Strategy seem even more practical due to the pandemic. But as evident during the pandemic, administrative lapses and the complex matrix of power ...

Videos

Latest News

IIT-KGP researchers awarded for generating power from wet clothes

A group of researchers from IIT Kharagpur has been conferred the Gandhian Young Technological Innovation Awards 2020 for developing a mechanism for generating electricity from wet clothes left under sunlight to dry, a spokesperson of the in...

With loan money gone, restaurants are at mercy of virus

The check has been cashed, the money spent, and beleaguered restaurant owners across America are looking down at empty wallets. Government coronavirus loans in the spring helped eating establishments rehire laid-off employees and ride out t...

Job search for work from home in India rises 442 pc during Feb-Jul: Report

Job searches for remote work or work from home in the country have increased by over 442 per cent between February and July, the highest globally, according to a report. Amid the COVID-19 pandemic, many jobs have rapidly become work-from-ho...

COVID-19 vaccine pact with India’s Wockhardt will guarantee supply: UK govt

The UK government on Monday said that its new manufacturing pact with the Mumbai-based global pharmaceutical and biotechnology company Wockhardt will guarantee the supply of millions more doses of a COVID-19 vaccine whenever it is ready. Th...

Give Feedback