China shares rise on Fed update, confidence in Beijing's ability to control new virus cases
16/06/2020 05:51
* SSEC 0.9%, CSI300 0.9%, HSI 3.0%
* HK->Shanghai Connect daily quota used 4.9%, Shanghai->HK
daily
quota used 1%
* FTSE China A50 +0.9%
BEIJING/SHANGHAI, June 16 (Reuters) - China shares rose on
Tuesday, tracking gains from the global markets after the U.S.
Federal Reserve widened its bond buying program, while investors
showed confidence that Beijing would be able to put the latest
resurgence of coronavirus cases under control.
** At the midday break, the Shanghai Composite index .SSEC was
up 0.87% at 2,915.09.
** China's blue-chip CSI300 index .CSI300 was up 0.89%, with
its financial sector sub-index .CSI300FS higher by 0.75%, the
consumer staples sector .CSI000912 up 0.55%, the real estate
index .CSI000952 up 0.94% and the healthcare sub-index
.CSI300HC up 1.31%.
** Chinese H-shares listed in Hong Kong .HSCE rose 2.68% to
9,915.03, while the Hang Seng Index .HSI was up 2.95% at
24,478.64.
** The smaller Shenzhen index .SZSC was up 0.94% and the
start-up board ChiNext Composite index .CNT rose 0.97%.
** The Fed on Monday announced tweaks to its bond buying
program, widening the range of eligible assets to include all
U.S. corporate bonds that satisfied certain criteria.
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** After weeks with almost no new coronavirus infections,
Beijing has recorded some 106 new cases since June 11.
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** Investors showed confidence that Beijing is capable of
putting the latest resurgence under control, as the government
is now more experienced in handling the outbreak, said Zhang Qi,
an analyst at Haitong Securities.
** The A-shares were also helped by reports on expected meetings
between the U.S. Secretary of State Mike Pompeo and China's
state councilor Yang Jiechi, discussing bilateral ties that have
soured deeply since the start of the year. urn:newsml:reuters.com:*:nL1N2DS24Q
** Hong Kong shares also rallied, as the formal start of the
Fed's corporate bond buying programme boosted short-term revival
of the risk-on tone, wrote Pang Jinyi, a strategist at IG.
** Around the region, MSCI's Asia ex-Japan stock index
.MIAPJ0000PUS rose 2.91%, while Japan's Nikkei index .N225
was up 3.98%.
** The yuan CNY=CFXS was quoted at 7.0735 per U.S. dollar,
0.22% firmer than the previous close of 7.0888.
(Reporting by Cheng Leng in Beijing, Luoyan Liu and Andrew
Galbraith in Shanghai)
((cheng.leng@thomsonreuters.com; +8610-5669-2129;))