Chinese stocks buoyed by better-than-expected exports data, Ping An Bank earnings, record first rise in seven days

Chinese stocks rose for the first time in seven days, as better-than-expected exports data and strong results by Ping An Bank provided some relief to investors, suggesting the fallout from the US-China trade war might not be as bad as anticipated.

The Shanghai Composite Index added 0.9 per cent to 2,794.55 on Thursday, ending a six-day, 6.2 per cent losing streak that sent the benchmark to a five-month low. However, the trading volume on the Shanghai exchange was 9.3 per cent below its 30-day average, signalling a lack of sustained buying interest and that the uptick in equities might be temporary.

The yuan strengthened against the US dollar in both onshore and offshore markets, even as the Chinese central bank set a weaker daily reference rate for the currency.

In Hong Kong, the Hang Seng Index gained 0.5 per cent to 26,120.77, even as a technical indicator suggested stocks on the benchmark were oversold.

Sentiment on equities was boosted, after China’s customs office said on Thursday morning the country’s overseas shipments had increased 3.3 per cent from a year earlier last month in US dollar terms. A Bloomberg survey of economists had forecast a 1 per cent decline.

“The market has been this week significantly impacted by the trade situation, which has muted the impact of decent earnings,” said Gerry Alfonso, director of the international business department at Shenwan Hongyuan Group in Shanghai. “Overall, the market seems to have shifted focus today from the trade situation onto more domestic issues.”