Daily Report | China stocks close at one-month high; traders eye Trump, economic data
Encouraging manufacturing figures drive gains but turnover down as Trump’s first news conference since the election expected to influence the US dollar and equities
Mainland Chinese stocks extended gains from last week and closed on Monday at their highest level in a month, while Hong Kong shares rose for a third consecutive session as traders awaited a batch of important mainland economic indicators due later this week and Wednesday’s news conference by United States president-elect Donald Trump, the first since his election.
The Shanghai Composite Index rose 0.5 per cent or 16.92 points to close at 3,171.24, adding to last week’s 1.6 per cent gain. The finish also marked the best closing level since December 9.
The CSI 300 gained 0.5 per cent to 3,363.9. The Shenzhen Component Index and the Shenzhen Composite Index both settled higher, up 0.4 per cent and 0.3 per cent respectively to 10,331.79 and 1,994.15. However, the Nasdaq-style ChiNext Index was off 0.2 per cent at 1,961.62.
In Hong Kong, the Hang Seng Index extended gains into its third consecutive session, rising 0.3 per cent or 55.68 points to 22,558.69. Last week it advanced 2.3 per cent.
However, trading volumes shrank. Combined turnover for Shanghai and Shenzhen markets decreased 9 per cent to 415.4 billion yuan from Friday, and turnover for the Hong Kong market also fell to HK$51.6 billion compared with Friday’s HK$58 billion.
“Stocks have moved higher since start of the year, as China’s manufacturing data pointed to a stronger-than-expected industrial growth and the yuan rebounded sharply against the US dollar,” said Cheng Jiawei, an analyst for Guotai Junan Securities International.
