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China Market rises on slowing virus infections

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Mainland China equity market finished session higher for a seventh straight session on Wednesday, 12 February 2020, as sentiment continued to build that Beijing will take more steps to blunt the economic upheaval caused by the deadly coronavirus and news that the spread of the coronavirus outbreak in China may be slowing and it may be over by April. At closing bell, the benchmark Shanghai Composite Index added 0.87%, or 25.23 points, to 2,926.90. The Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 1.55%, or 27.32 points, to 1,785.3. The blue-chip CSI300 index was up 0.81%, or 31.97 points, to 3,984.43.

Market sentiment is driven by China policy expectation, as news says President Xi told officials that their response on coronavirus had already harmed the economy.

In a new step, China allowed local governments to sell 848 billion yuan of debt before March, in addition to an earlier approved quota of 1 trillion yuan in bonds.

Chinese senior medical adviser said the virus outbreak in the country would hit a peak this month, and the epidemic might be over by April. The number of deaths in China's central Hubei province rose by 94 to 1,068 as of Tuesday, while a further 1,638 new cases were detected in the province the lowest since Jan 31.

CURRENCY NEWS: China's yuan edged up on Wednesday as investors drew relief from news that the spread of the coronavirus outbreak in China may be slowing and it may be over by April. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.9718 per dollar, down from 6.9897 set previous day. At midday, the onshore yuan CNY=CFXS firmed 0.05% to 6.9624 per dollar.

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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, February 12 2020. 17:57 IST