Stock markets in China pulled out of recent downturn, Hainan shares surge
Stock markets on the Chinese mainland pulled out of their recent downturn to close with gains Tuesday as investors were encouraged by the release of better-than-expected March inflation data.
The Shanghai Composite Index climbed 14.18 points, or 0.64 percent, to end at 2,225.78; while the Shenzhen Component Index ascended 39.28 points, or 0.44 percent, to finish at 8,993.11.
The Shanghai market opened higher Tuesday morning after rosy corporate earnings in the US propped up stocks in the country. Rallies in financial, automobile, construction materials, property and nonferrous metal shares carried Chinese markets higher as concerns about further monetary tightening ebbed after the National Bureau of Statistics' consumer price index (CPI) for March increased 2.1 percent year-on-year, down from the 3.2 percent rate seen in February and below earlier estimates of 2.4 percent.
With most of the markets' heavyweights buoyed by these figures, the Shanghai index touched an intra-day peak of 2,234.72 points before sell-offs eroded the early gains.
Trading sentiment remained sluggish Tuesday, with combined turnover at the two exchanges sliding to 131.61 billion yuan ($21.21 billion), down 10.54 percent from Monday.
Hainan Province-based stocks scored the day's biggest wins. The island province, which is hosting the Boao Forum for Asia, recently released a new raft of urban development plans. Hainan Island Construction Co and Hainan Strait Shipping Co both jumped to the 10-percent daily limit to close at 9.79 yuan and 11.81 yuan respectively.
The auto, brokerage and insurance sectors also outperformed . Anhui Jianghuai Automobile Co surged 8.40 percent to 6.97 yuan; while Industrial Securities Co increased 4.87 percent to 11.41 yuan; and China Pacific Insurance (Group) Co gained 4.32 percent to 19.33 yuan.
SOURCE: Global Times
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