Resources stocks lead China market rally

Mainland China stock market ended higher on Thursday, 04 February 2016, with resources related shares leading rally on the back of surprise rebound in crude oil prices and stronger official yuan midpoint rate fixing from the China's central bank. The Shanghai Composite Index ended up 1.53%, or 41.78 points, at 2781.02. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, grew 36.12 points, or 1.23%, to 2984.76.

China's central bank set its official yuan midpoint rate at the strongest level since January 6, after the dollar index fell to its lowest level in three months amid weaker-than-expected US service-sector data and comments from the US Federal Reserve suggesting a slower-than-expected monetary tightening plan. The PBOC set the daily fixing, which restricts onshore moves to a maximum 2 percent on either side, at 6.5419 a dollar, 0.16 percent stronger than the previous day's reference rate.

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