China shares book catch-up rally, HK records longest winning streak since 2018

Xinyi Glass Holdings

06/05/2024 09:35

(Updates to the close)
       SHANGHAI, May 6 (Reuters) - Mainland Chinese shares
staged a catch-up rally tracking their regional peers on Monday
as investors returned from a long Labor Day holiday, while the
Hong Kong market snagged its 10th straight session of gains, the
longest winning streak since 2018.
    ** Broader Asian stocks rose on renewed bets that the U.S.
Federal Reserve would likely ease rates this year, while the yen
weakened after a strong surge last week from Tokyo's suspected
currency intervention.
    ** Sentiment also improved as China would step up support
for the economy with prudent monetary and proactive fiscal
policies, including interest rates and bank reserve requirement
ratios, the Politburo of the Communist Party was quoted by state
media as saying.
    ** "The April Politburo meeting statement reflected a strong
commitment to stimulate growth, especially in the discussion on
potential property de-stocking measures," Jason Lui, head of
APAC equity and derivative strategy at BNP Paribas, said in a
note.
    He upgraded his view on the MSCI China index (MXCN) by
adopting the bull case as new base scenario, suggesting a 4%
additional upside from current levels.
    ** At the close of trade, China's benchmark Shanghai
Composite index  .SSEC  closed up 1.16% at 3,140.72 points, the
highest closing level since September 2023. 
        ** The blue-chip CSI300 index  .CSI300  ended up 1.48%
at 3,657.88 points, the loftiest close since October 2023
  
        ** In Hong Kong, the Hang Seng index  .HSI  was up
102.38 points or 0.55% at 18,578.30 points, recording the 10th
consecutive gain and booking the longest winning streak since
2018. The Hang Seng China Enterprises index  .HSCE  rose 0.38%
to 6,572.45.
  
        ** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was firmer by 0.65%, while Japan's Nikkei index
 .N225  closed down 0.1%.
  
        ** The yuan  CNY=CFXS  was quoted at 7.2143 per U.S.
dollar at 0813 GMT, 0.15% firmer than the previous close of
7.225. 
  

 (Reporting by Shanghai Newsroom; Editing by Varun H K and Sonia
Cheema)