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China Market rebounds 1.91%

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Headline indices of the Mainland equity market strongly rebounded on Wednesday, 15 May 2019, on growing expectation of fresh stimulus measures after weak industrial output and data. Meanwhile buying momentum supported by U. S. Donald Trump's optimistic remarks that eased worries about the U. S.-trade dispute. At closing bell, the benchmark Shanghai Composite rebounded 1.91%, or 55.07 points, to 2,938.68. The Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 2.32%, or 35.85 points, to 1,577.92. The blue-chip CSI300 added 2.25%, or 81.94 points, to 3,727.09.

on Wednesday reported surprisingly weaker growth in and industrial output for April, adding pressure on to roll out more stimulus as the trade war with the US rumbles on. Growth in industrial output slowed more-than-expected to 5.4% in April from a year earlier, pulling back from a surprisingly strong 4-1/2-year high of 8.5% in March. were also worse-than-expected, with the headline number rising 7.2%; the slowest pace since May 2003.

Fears of further escalation in trade tensions were slightly eased after Trump cited the trade war with China "a little squabble" and insisted talks between the world's two largest economies had not collapsed.

On Tuesday, Trump tweeted: When the time is right we will make a deal with China, adding that his respect and friendship with is unlimited. However he also said the Federal Reserve could retaliate with cheap money in response to China's easy monetary policy. China will be pumping money into their system and probably reducing interest rates, as always, in order to make up for the they are, and will be, losing. If the Federal Reserve ever did a 'match' it would be game over, we win! In any event, China wants a deal! Trump tweeted.

CURRENCY NEWS: China's yuan edged up against the U. S. dollar on Wednesday, inline with China's central stronger midpoint fixing. Prior to market opening on Wednesday, the of China (PBOC) lowered its official yuan midpoint to 6.8649 per dollar, 284 pips, or 0.41%, weaker than the previous fix of 6.8365 and was the softest since Dec. 27, 2018. At 07:10 GMT, the yuan quoted at 6.8648 per U. S. dollar, 0.15% firmer than the previous close of 6.8753.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, May 15 2019. 18:09 IST