Back Office Login

you are here: Equity | News | Foreign Markets| Detailed News
Foreign MarketsBack
China Market rebounds 1.91%
15-May-19   18:09 Hrs IST
Headline indices of the Mainland China equity market strongly rebounded on Wednesday, 15 May 2019, on growing expectation of fresh stimulus measures after weak industrial output and retail sales data. Meanwhile buying momentum supported by U.S. President Donald Trump's optimistic remarks that eased worries about the U.S.-China trade dispute. At closing bell, the benchmark Shanghai Composite Index rebounded 1.91%, or 55.07 points, to 2,938.68. The Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 2.32%, or 35.85 points, to 1,577.92. The blue-chip CSI300 index added 2.25%, or 81.94 points, to 3,727.09.

China on Wednesday reported surprisingly weaker growth in retail sales and industrial output for April, adding pressure on Beijing to roll out more stimulus as the trade war with the US rumbles on. Growth in industrial output slowed more-than-expected to 5.4% in April from a year earlier, pulling back from a surprisingly strong 4-1/2-year high of 8.5% in March. Retail sales were also worse-than-expected, with the headline number rising 7.2%; the slowest pace since May 2003.

Fears of further escalation in trade tensions were slightly eased after Trump cited the trade war with China a little squabble and insisted talks between the world's two largest economies had not collapsed. On Tuesday, Trump tweeted: “When the time is right we will make a deal with China,” adding that his “respect and friendship with President Xi is unlimited.” However he also said the Federal Reserve could retaliate with cheap money in response to China's easy monetary policy. “China will be pumping money into their system and probably reducing interest rates, as always, in order to make up for the business they are, and will be, losing. “If the Federal Reserve ever did a 'match' it would be game over, we win! In any event, China wants a deal!” Trump tweeted.

CURRENCY NEWS: China's yuan edged up against the U.S. dollar on Wednesday, inline with China's central bank stronger midpoint fixing. Prior to market opening on Wednesday, the People's Bank of China (PBOC) lowered its official yuan midpoint to 6.8649 per dollar, 284 pips, or 0.41%, weaker than the previous fix of 6.8365 and was the softest since Dec. 27, 2018. At 07:10 GMT, the yuan quoted at 6.8648 per U.S. dollar, 0.15% firmer than the previous close of 6.8753.

Powered by Capital Market - Live News