China Stocks gain on inflation data

The Mainland China share market finished session higher on Wednesday, 09 June 2021, after official data showed country's consumer price index in May rose less than expected 1.3% from a year earlier. However, market gains capped amid lingering Sino-US trade tension and concerns about further policy tightening after producer price index for May jumped more than expected 9% from a year earlier.

At closing bell, the benchmark Shanghai Composite Index advanced 0.32%, or 11.29 points, to 3,591.40. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.14%, or 3.41 points, to 2,396.54. The blue-chip CSI300 index added 0.08%, or 4.33 points, to 5,236.45.

The best performing sectors in the Shanghai Stock Exchange were Air Freight (up 44%), Vintners & Others (up 5.6%), Property & Casualty Insurance (up 5.1%), Health Care Facilities (up 4.5%), and Oil & Gas Drilling (up 4.2%), while the worst performing sectors were Internet Retail (down 3.9%), Computer & Electronic Equipment Dealer (down 3.5%), Yellow Wine (down 2.9%), Oil & Gas Storage & Transportation (down 2.6%), and Health Care Technology (down 2%).

The best performing sectors in the Shenzhen Stock Exchange were Industrial Conglomerates (up 4.9%), Specialized Consumer Services (up 4.9%), Oil & Gas Refining & Marketing (up 3.7%), Shoes (up 3.7%), and Coal (up 3.6%), while the worst performing sectors were Household Products (down 4.1%), Brewers (down 3.7%), Leisure Services (down 3.2%), Motorcycle (down 2.7%), and Personal Products (down 2.6%).

In the US, the Senate on Tuesday passed a sweeping legislation designed to strengthen Washington's hand in its escalating geopolitical and economic competition with China. The bill, which includes about US$250 billion worth of spending, touches on nearly every aspect of the tensed US-China ties. China separately was reported to be preparing to pass an anti-sanctions law of its own.

ECONOMIC NEWS: China Consumer Prices Up 1.3% On Year In May- China consumer prices were up 1.3 percent on year in May, the National Bureau of Statistics said on Wednesday, up from 0.9 percent in April. On a monthly basis, inflation eased 0.2 percent after slipping 0.3 percent in the previous month. The producer price index (PPI) rose 9 per cent from a year earlier, versus 6.8 per cent in April. CURRENCY NEWS: China yuan was up against the dollar on Wednesday, despite softer mid-point fixing by central bank. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.3956 per dollar, 0.07% softer than the previous fix of 6.3909. In the spot market, onshore yuan CNY=CFXS was changing hands at 6.3949at around late afternoon, 0.1% stronger than the previous late session close at 6.401.

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