China stocks touch seven-week high on coronavirus treatment, policy hopes

Wharf Real Estate Investment

30/04/2020 06:04

* SSEC 1.3%, CSI300 1.2%, HSI 0.3%
    * HK->Shanghai Connect daily quota used 100%, Shanghai->HK
daily
quota used 0%
    * FTSE China A50 +0.6%

    SHANGHAI, April 30(Reuters) - China stocks hit a seven-week
high on Thursday after a COVID-19 drug study showed encouraging
early results and downbeat data reinforced hopes of further
stimulus to bolster the world's second largest economy. 
    ** At the midday break, the Shanghai Composite index  .SSEC 
was up 1.3% at 2,859.21 points, the highest since March 16. 
    ** 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.  
    ** The Shanghai Composite index is set to end April 4%
higher, on track for its best monthly gain since December 2019, 
as investors cheered the reopening of some parts of the country
and a slew of stimulus measures.
    ** 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 blue-chip CSI300 index  .CSI300  rose 1.22%, with
its financial sector  .CSI300FS  rising 0.92%. The consumer
staples sector  .CSI000912  declined 0.4%, the healthcare
sub-index  .CSI300HC  fell 0.49%, while the real estate index
 .CSI000952  rose 0.26%.
    ** Chinese H-shares listed in Hong Kong  .HSCE  rose 0.57%
to 10,040.87, while the Hang Seng Index  .HSI  gained 0.28% at
24,643.59. 
    ** 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  
    ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 1.31% while Japan's Nikkei index
 .N225  was up 2.84%.
    ** The yuan  CNY=CFXS  was quoted at 7.0588 per U.S. dollar,
0.25% firmer than the previous close of 7.0765. 

 (Reporting by Luoyan Liu and Andrew Galbraith; Editing by Amy
Caren Daniel)
 ((luoyan.liu@thomsonreuters.com; Reuters Messaging:
luoyan.liu.thomsonreuters.com@reuters.net))