NewMainland China shares bounce back in afternoon to close higher for first time in five days

Mainland markets shrugged off deteriorating trade data to close higher on Tuesday for the first time in five trading days, aided by a late afternoon flourish.

Recovering from a lunchtime slump, the Shanghai Composite Index finished 2.92 per cent firmer at 3,170.45, led by industrial and financial sector stocks. Daily trading turnover, at 263.51 billion yuan, was the lowest in seven months, suggesting investors are staying on the sidelines.

The Shenzhen Composite Index also recovered from a midday dip to finish 3.83 per cent higher at 1,741.54. The tech-stock-centric ChiNext Index rose 5.68 per cent to 2,001.16.

Among major gainers by market weighting, China Life Insurance rose 3.59 per cent to 25.41 yuan and Shanghai Oriental Pearl Media finished up 8.85 per cent at 32.72 yuan. Industrial stock Shanghai Electric gained 5.72 per cent to 11.82 yuan.

Mainland exports contracted 5.5 per cent year on year in August in US dollar terms after an 8.3 per cent decline in July. The reading was slightly above a the median forecast in a Bloomberg survey of a 6.6 per cent decline.

Imports slumped in August – falling 13.8 per cent year on year – in the 10th consecutive monthly decline, underlining the challenges Beijing faces if it is to hit end of year growth targets.