China stocks end up higher on trade optimism
- Country:
- China
China stocks started the week higher on Monday, underpinned by fresh hopes for progress in Sino-U.S. trade talks following positive comments from both sides. ** The blue-chip CSI300 index rose 0.7%, to 3,878.21, while the Shanghai Composite Index also closed up 0.7% at 2,906.17.
** The leaders of the United States and China on Friday underscored their desire to sign an initial trade deal and defuse a 16-month tariff war that has lowered global growth, providing a welcome boost to financial markets. ** U.S. national security adviser Robert O'Brien said on Saturday that an initial agreement is still possible by the end of the year, but warned Washington would not turn a blind eye to what happens in Hong Kong.
** China and the United States are 'very close' to a phase one trade deal, the Global Times, a tabloid run by the ruling Communist Party's official People's Daily, said on Monday, discounting "negative" media reports. ** The market also found help in robust foreign inflows ahead of the taking effect of MSCI's further A-share inclusion. For the day, investors bought a net 7 billion yuan ($994.47 million) worth of A-shares via the Stock Connect linking Hong Kong and the mainland.
** Bucking the broad strength, the tech-heavy start-up board ChiNextP ended down 1.1%, as tech players, in particular, Huawei suppliers declined after the U.S. Federal Communications Commission moved to bar Huawei Technologies from a government subsidy program. ** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.66%, while Japan's Nikkei index closed up 0.78%.
** At 07:28 GMT, the yuan was quoted at 7.0325 per U.S. dollar, 0.11% firmer than the previous close of 7.0405. ** So far this year, the Shanghai stock index is up 16.5% and the CSI300 has risen 28.8%, while China's H-share index listed in Hong Kong is up 4.9%. Shanghai stocks have declined 0.78% this month.
** As of 07:29 GMT, China's A-shares were trading at a premium of 27.96% over the Hong Kong-listed H-shares. ($1 = 7.0389 Chinese yuan renminbi)
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
- READ MORE ON:
- China
- Robert O'Brien
- MSCI
- Hong Kong
- Washington
- Huawei
- People's Daily
- Global Times
- Shanghai
- Japan
ALSO READ
Japan is giving Washington 250 new cherry trees to replace those to be lost in construction work
US lawmakers angry after Huawei unveils laptop with new Intel AI chip
Foreign Secy Vinay Kwatra bolsters India-US relations on Washington visit
Defense relationship part of US-Iraq talks in Washington next week, US official says
US lawmakers angry after Huawei unveils laptop with new Intel AI chip