China Market rises 1.1%

The Mainland China equity market closed higher on Tuesday, 04 September 2018, snapping five sessions of losing streak, as investors chased for bottom fishing in beaten down stocks. However, market gains were limited on caution of intensifying U.S.-led trade war after U.S. President Donald Trump has said he is ready to implement new tariffs on Chinese imports as soon as a public comment period on the plan ends on Thursday. At closing bell, the benchmark Shanghai Composite Index inclined 1.1%, or 29.85 points, to 2,750.58, while the Shenzhen Composite Index, which tracks stocks on China's second exchange, rebounded 1.16%, or 16.86 points, to 1,465.79. The blue-chip CSI300 index grew 1.27%, or 42.08 points, to 3,363.90.

U.S. President Donald Trump has said he is ready to implement new tariffs on Chinese imports as soon as a public comment period on the plan ends on Thursday, which would be a major escalation after Washington already applied tariffs on $50 billion of exports from China.

Data showed manufacturing activity in China grew at the slowest pace in more than a year in August, compounding fears that the intensifying U.S.-led trade war could derail growth, not just in China, but globally.

Chinese state-owned banks have swapped dollars for yuan in tenors ranging from a month to a year in the offshore forwards market in recent days, traders said on Tuesday, providing some support for the yuan as markets braced for a potential major escalation in the U.S.-China tariff war.

Shenzhen-listed shares of construction equipment maker Zoomlion were flat after hitting more-than-nine-year lows on Monday after posting a 23.6% drop in first-half profit.

CURRENCY NEWS: China's yuan was up against the U.S. dollar on Tuesday, inline with strong mid-point fixing by People Bank of China and signs of tight liquidity for offshore yuan. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.8183 per dollar, 164 pips or 0.24% firmer than the previous fix of 6.8347. In the spot market, the onshore yuan opened at 6.8227 per dollar and was changing hands at 6.8216 at midday, 19 pips firmer than the previous late session close. The offshore yuan was trading at 6.8317 per dollar at midday, compared with the previous close of 6.8330.

Powered by Capital Market - Live News