BEIJING: China stocks jumped, sending the benchmark index toward the highest stretch of weekly increases in eight years, because of an unexpected expand in a manufacturing gauge signaled the world’s second-biggest economy is stabilizing.
The Shanghai Composite Index (SHCOMP) adding 1.4 percent to 3,389.92 at the 11:30am break and wiping out this week’s loss. Along with data this week showing industrial output and retail sales improved in December, the first reading of the economy’s momentum in January may alleviate concerns of a deeper downturn.
PetroChina Co. and Jiangxi Copper Co. led a rally for energy and material producers, advancing at least 1.6 percent. The preliminary Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics was at 49.8 in January, exceeding the median estimate of 49.5 in a Bloomberg survey. Citic Securities Co. and Haitong Securities Co., the biggest listed brokerages, surged more than 3 percent. Industrial & Commercial Bank of China Ltd. climbed to a one-week high.
“The market seems to continue stabilizing with Shanghai opening today slightly up driven by strong performance in the brokerage and banking sectors,” said Gerry Alfonso, a China equity sales and trading director at Shenyin & Wanguo Securities Co. The data were “above the market expectation,” he said.
The CSI 300 Index climbed 1.3 percent, while Hong Kong’s Hang Seng China Enterprises Index (HSCEI) advanced 1.6 percent and the Hang Seng Index added 1.3 percent. The Bloomberg China-US Equity Index rose 1.3 percent yesterday, spurred by the European Central Bank’s stimulus plan.
