China shares end higher on optimism over govt economic recovery policies

BEIJING: China shares closed higher on Tuesday as optimism over the government's new policies seeking to support the economy trumped concerns over deteriorating Sino-U.S. relations.

The Shanghai Composite index closed up 0.2pc at 2,921.40.

The blue-chip CSI300 index was up 0.31pc, with its financial sector sub-index higher by 1.04pc, the consumer staples sector down 0.35pc, the real estate index up 2.41pc and the healthcare sub-index down 0.91pc.

The smaller Shenzhen index ended up 0.2pc and the start-up board ChiNext Composite index was weaker by 0.599pc.

"We can continue to expect a steady rebound in stock markets in the following days as the economy is walking away from the COVID-19 impact," said Zhang Yanbing, an analyst with Zheshang Securities, noting that tensions between Washington and Beijing are a smaller factor at the moment.

Shares in China's top liquor makers hit record highs, as investors see industry recovery despite the coronavirus crisis.

Shares in China's Hainan-based firms including Hainan Haide Industry Co Ltd, Hainan Dadonghai Tourism Centre (Holdings) and Huawen Media Group all surge by the 10pc daily trade limit in morning tradings, as Beijing vowed to further open up the southern island.

The China government ordered state-owned firms to halt large-scale U.S. soybean purchases, raising the spectre of damaging trade disagreements between Washington and Beijing.

Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.61pc, while Japan's Nikkei index closed up 1.19pc.

At 07:08 GMT, the yuan was quoted at 7.1229 per U.S. dollar, 0.09pc firmer than the previous close of 7.129.