SHANGHAI: China’s benchmark stock index rose to the highest level in a week, led by financial companies and airlines, before the release of economic data including industrial production.
Bank of China Ltd and Shanghai Pudong Development Bank Co advanced more than 2 per cent. China Southern Airlines Co jumped by the 10 per cent daily limit and China Eastern Airlines Corp surged 7.5 per cent as crude oil traded below US$49 (RM 181.89) a barrel.
The Shanghai Composite Index gained 0.8 per cent to 3,311.91 at 9.55am local time. The CSI 300 Index added 1 per cent. Hong Kong’s Hang Seng China Enterprises Index climbed 0.4 per cent, while the Hang Seng Index slipped 0.2 per cent.
The statistics bureau is due to release January-February data on industrial production, retail sales and fixed-asset investment at 1.30pm Factory output probably rose 7.7 per cent from a year earlier, retail sales increased 11.6 per cent and fixed-asset investment grew 15 per cent, according to the median estimates of Bloomberg surveys. The January-February data are combined to adjust for the impact of the Chinese New Year, the date of which changes from year to year.
The data come a day after producer prices fell 4.8 per cent in February, extending a record run of declines to 36 months. While consumer prices beat estimates with a 1.4 per cent rise, it may be too early to conclude deflation risks have abated because last month’s Lunar New Year holiday festivities boosted costs.
The Shanghai Composite is valued at 12.4 times 12-month projected earnings, compared with the five-year average of 10.3, according to data compiled by Bloomberg. Trading volumes were 25 per cent higher than the 30-day average for this time of day.
