SHANGHAI: China’s blue-chip stocks and Hong Kong shares closed up on Tuesday, led by property developers on expectations of policy support, while other Asian shares also rose ahead of inflation data from the United States.
China’s CSI 300 Index closed up 0.2%, while the Shanghai Composite Index slipped 0.4%.
Hong Kong’s benchmark Hang Seng rose 3.1%, and the Hang Seng China Enterprises Index climbed 3.5%.
Broader Asian equities nudged higher ahead of the US inflation report, while Japanese shares fell and the yen firmed on rising expectations that the Bank of Japan may be ready to exit ultra easy-monetary policy as early as next week.
Shares of China Vanke jumped 5.7% after the country’s No.2 property developer said the impact of Moody’s downgrading it to a “junk” rating on its financing activities was “controllable”.
Reuters had earlier reported on Monday that China had asked banks to enhance financing support for state-backed Vanke and called on creditors to consider allowing private debt maturities to be extended.
The property sector climbed 5%, while consumer staples added 3%. However, shares in energy slumped 3.6%, and communications equipment lost 1.6%.
Automobiles gained 1.1% as Li Yunze, head of the National Financial Regulatory Administration (NFRA), said that China is considering lowering the downpayment requirement for passenger vehicle loans.
Tech giants listed in Hong Kong jumped 4.6%, and mainland developers surged 8%.
“China’s recent economic data and policy tones are generally in line with market expectations,” Wang Ying, analyst at Nanhua Futures, said.
“If there is no additional policy stimulus in March, the market will be more affected by overseas data.”
Global investors’ attention is zeroed in on US inflation data due later on Tuesday. If the print is higher than expected, this could worry investors, but such concerns may be short-lived, analysts said.
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