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China Stocks gain ahead of US-China phase one deal sign

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Mainland China equity market finished session higher on Monday, 13 January 2020, as investors risk sentiments underpinned on optimism over the signing of a phase-one trade deal between the U. S. and China on Wednesday in Washington. Also contributing to the equities' run-up was the absence of the US-Iran was despite Tehran's repeated attacks on the US military bases in Iraq. At closing bell, the benchmark Shanghai Composite Index inclined 0.75%, or 23.28 points, to 3,115.57. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 1.36%, or 24.47 points, to 1,822.35. The blue-chip CSI300 index was down 0.98%, or 40.80 points, to 4,203.99.

U. S.

President Donald Trump and Chinese officials are set to sign the long-awaited phase one trade deal between the two countries on Wednesday in Washington. The Trump administration has invited at least 200 people to the White House for the ceremony. The China's commerce ministry said that Vice Premier Liu He, who leads the Chinese negotiation team in the trade talks, is set to visit Washington from today. The deal will involve some tariff relief, increased Chinese purchases of U. S. agricultural goods and changes to intellectual property and technology rules.

Investors are also looking ahead to trade and economic growth data due this week, which is expected to shed more light on some early signs of economic improvement after the country logged its slowest pace of growth in nearly three decades in the third quarter.

CURRENCY NEWS: China's yuan hovered around five-month highs on Monday. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.9011 per dollar, 0.26% firmer than the previous fix of 6.9191. The yuan rose 0.2% against the greenback to 6.9011 at midday, after China's central bank set the strongest midpoint CNY=PBOC since August 5, 2019. The currency has gained roughly 2% since early December.

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

First Published: Mon, January 13 2020. 14:37 IST