Shanghai stocks set for best week in 10 months as cbank signals policy push


Reuters | Beijing | Updated: 21-02-2020 11:29 IST | Created: 21-02-2020 10:57 IST
Shanghai stocks set for best week in 10 months as cbank signals policy push
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China stocks climbed on Friday, with Shanghai on course for their best week since last April, as the central bank signalled further support for the economy pressured by the fast-spreading coronavirus outbreak. ** At the midday break, the Shanghai Composite index was up 0.5% at 3,044.11 points. The index climbed 4.4% so far this week, poised for its largest weekly gain since April 2019.

** The blue-chip CSI300 index also climbed 0.5% on Friday, and was up 4.4% week-on-week, on track for its best week since last June. ** CSI300's financial sector sub-index edged down 0.2%, the consumer discretionary sector gained 0.2%, while healthcare stocks climbed 0.4%. ** The smaller Shenzhen index rose 1.5% and the start-up board ChiNext Composite index advanced to its highest since July 2016 by rallying 2.4%. ** China reported an uptick in new cases of coronavirus on Friday although the rise in infections remained at its slowest pace since January, a downward trend which the World Health Organization has called encouraging.

** China has rolled out a raft of supportive measures to cushion the economic impact of the coronavirus outbreak. ** As widely expected, the People's Bank of China slashed a key benchmark rate this week and said it would extend credit, provide favourable loans or rates to firms involved in controlling the epidemic. ** The Chinese commerce ministry said on Friday it will speed up studying new fiscal, tax financial, insurance measures to support companies to counter the impact of the epidemic.

** Expectation of looser liquidity will continue to drive tech and growth stocks, lifting valuations across the the board, Sealand Securities noted in report on Friday. ** The earliest vaccine for the coronavirus will be submitted for clinical trials around late April, China's Vice Science and Technology Minister Xu Nanping said on Friday.

** Apple iPhone maker Foxconn said on Thursday it is cautiously restarting production at its main plants in China and warned revenue will be hurt this year by the coronavirus epidemic. ** In Hong Kong, authorities reported the first case of a police officer to have contracted the coronavirus. The outbreak has broadened discontent with the city's leadership and Beijing's influence. ** Chinese H-shares listed in Hong Kong fell 0.8% and the Hang Seng Index eased 0.7% to 27,408.79. ** Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.6%, while Japan's Nikkei index fell 0.2%. ** The Shanghai stock index is above its 50-day moving average and above its 200-day moving average.

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

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