China stocks at highest in 2 weeks as c.bank seeks to stabilize yuan

CIG ShangHai Co

27/08/2018 08:40

* SSEC +1.9 pct, CSI300 +2.4 pct
    * China cenbank revives "counter-cyclical factor" for yuan
fixing
    * Airline shares rally on stronger yuan
    * Consumer, healthcare firms up after recent slump

    By Andrew Galbraith
    SHANGHAI, Aug 27 (Reuters) - Shares in China ended at
two-week highs on Monday, lifted by a stronger yuan after a
tweak in the central bank's management of the currency boosted
airline stocks and other firms with heavy dollar exposure.
    The Shanghai Composite index  .SSEC  closed up 1.9 percent
at 2,780.90, its biggest daily percentage gain since August 7. 
    China's blue-chip CSI300 index  .CSI300  ended 2.4 percent
higher, while the financial sector sub-index  .CSI300FS  rose
1.7 percent. 
    The consumer staples sector gained 3.9 percent, while the
real estate index was up 4.2 percent and the healthcare
sub-index rose 3.9 percent.
    Consumer, healthcare and real estate firms have suffered
during a market slump in recent weeks, dogged by a vaccine
scandal that has undermined consumer confidence, and concern
over stepped-up property controls.
    The yuan hovered at a 2-1/2-week high against the U.S.
dollar on Monday after China's central bank revived a
"counter-cyclical factor" in its daily fixing to support the
currency, arresting a record 10-week slide that has rattled
global markets.  urn:newsml:reuters.com:*:nL3N1VI1FD
    The yuan  CNY=CFXS  was quoted at 6.8167 per U.S. dollar, 23
pips firmer than the previous close of 6.819.
    Airline shares were among the winners on Monday as investors
bet that a stronger yuan would boost their bottom lines. China
Southern Airlines  600029.SS  gained 4.5 percent and Air China
 601111.SS  was up 3.3 percent.
    A broader index of transport firms  .CSI300TRANS  gained 1.9
percent.
    The smaller Shenzhen index  .SZSC  rose 2.5 percent and the
start-up board ChiNext Composite index  .CHINEXTP  ended 3
percent higher.
    Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 1.1 percent while Japan's Nikkei
index  .N225  ended 0.9 percent higher.
    Shares around the region were supported by Federal Reserve
Chair Jerome Powell's comments on Friday that a gradual approach
to raising rates was best to protect the U.S. economy and job
growth. urn:newsml:reuters.com:*:nL2N1VG053
    The largest percentage gainers in the main Shanghai
Composite index were Tianjin Quanyechang Group Co Ltd
 600821.SS , which rose 10.09 percent, Shanghai 3F New Materials
Co Ltd  600636.SS , which gained 10.02 percent, and CIG ShangHai
Co Ltd  603083.SS , which finished 10.02 percent higher.
    Shanghai's largest percentage losses were led by Gansu
Gangtai Holding Group Co Ltd  600687.SS , down 10.07 percent,
followed by Xinjiang Korla Pear Co Ltd  600506.SS  losing 9.96
percent and Anxin Trust Co Ltd  600816.SS  down by 6.6 percent.
    The Shanghai index is down 15.9 percent so far this year,
while China's H-share index is off by 5.4 percent. Shanghai
stocks have declined 3.32 percent this month. 

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
China stock market graphics suite     http://reut.rs/1NfkoGl
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Andrew Galbraith
Editing by Darren Schuettler)
 ((Andrew.Galbraith@tr.com; +86 21 6104 1779; Reuters Messaging:
andrew.galbraith.thomsonreuters.com@reuters.net ; Twitter: https://twitter.com/apgalbraith))