SHANGHAI: 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 US 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 closed up 1.16% at 3,140.72 points, the highest closing level since September 2023.
The blue-chip CSI300 index ended up 1.48% at 3,657.88 points, the loftiest close since October 2023 ** In Hong Kong, the Hang Seng index 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 rose 0.38% to 6,572.45.
Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.65%, while Japan’s Nikkei index closed down 0.1%.
The yuan was quoted at 7.2143 per US dollar at 0813 GMT, 0.15% firmer than the previous close of 7.225.
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