China stocks log best month in five on virus drug trial, policy hopes

Wharf Real Estate Investment

30/04/2020 08:28

SHANGHAI, April 30 (Reuters) - China stocks rallied on
Thursday to post their biggest monthly advance since December,
after positive trial results for a drug to treat COVID-19 and
downbeat data reinforced hopes of further stimulus to bolster
the world's second-largest economy.
    
    ** The blue-chip CSI300 index  .CSI300  ended up 1.2% at
3,912.58, while the Shanghai Composite Index  .SSEC  closed 1.3%
higher at 2,860.08.   
    ** For the week, CSI300 gained 3.1%, while SSEC added 1.8%.
    ** For the month, CSI300 climbed 6.1%, while SSEC was up 4%,
both posted their best monthly rise since last December, as
investors cheered the reopening of some parts of the country and
a raft of stimulus measures. 
    ** On the macro front, data showed China's official
Purchasing Managers' Index (PMI) eased to 50.8 in April from 52
in March. While twin surveys showed China's factories suffered a
collapse in export orders in April, suggesting a full-blown
recovery appeared some way off.  urn:newsml:reuters.com:*:nL3N2CH16D 
    ** The latest data is not that surprising, as China has the
best economic recovery in the world as it has basically brought
the coronavirus outbreak under control, said Yan Jinkui, an
analyst with Caida Securities.
    ** Amid the global monetary easing, why should China stocks
fall at this moment, while markets overseas rally where virus
control is not that good, he added. 
    ** A populous region in northern China that includes Beijing
will ease restrictions imposed to halt the spread of the new
coronavirus, as the country gradually transitions to a new state
of normal amid dwindling cases of COVID-19.  urn:newsml:reuters.com:*:nL4N2CH027  
    ** Top U.S. infectious disease official Anthony Fauci said
Gilead's  GILD.O  antiviral remdesivir will become the standard
of care for COVID-19 after early results showed it helped
patients recover more quickly from the illness caused by the
coronavirus.  urn:newsml:reuters.com:*:nL4N2CH1FK 
    ** China's transport ministry said on Thursday it has a pool
of transportation projects with a total investment value of 800
billion yuan ($113.02 billion) that can start as soon as funding
is guaranteed.  urn:newsml:reuters.com:*:nB9N2C401R 
    ** China's financial markets will be closed from Friday
through May 5 for Labor Day holiday. 
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 1.43%, while Japan's Nikkei index
 .N225  was up 2.14%.
    ** The yuan  CNY=CFXS  was quoted at 7.048 per U.S. dollar,
0.4% firmer than the previous close of 7.0765. 

 (Reporting by Shanghai Newsroom, Editing by Sherry
Jacob-Phillips)
 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))