Mainland Chinese shares rise on stimulus hopes, Hong Kong shares edge lower

From Business Recorder: 2024-05-06 01:42:03

Mainland Chinese shares rose on Monday after the Labor Day holiday, with the Shanghai Composite up 1.05% and the CSI 300 rising 1.53%. Policy hopes and support for the economy boosted sentiment, with the financial sector, consumer staples, real estate, and healthcare sectors all seeing gains. Chinese H-shares in Hong Kong fell, while Asian stocks overall saw gains.

In Asia, broader stocks rose on expectations of US Federal Reserve rate easing. The yen weakened after suspected currency intervention in Tokyo. China plans to boost the economy with monetary and fiscal policies, including potential property de-stocking measures. Analysts upgraded their view on the MSCI China index, predicting 4% additional upside from current levels.

Despite the rally in Chinese shares, Hong Kong’s market edged lower, with H-shares down 0.26% and the Hang Seng Index slipping 0.05%. The Shenzhen and ChiNext Composite indices posted gains, while the Shanghai STAR50 index rose. MSCI’s Asia ex-Japan index was higher, but Japan’s Nikkei index was down. The yuan strengthened slightly against the US dollar.



Read more at Business Recorder: Mainland China shares book catch-up rally on stimulus hopes, Hong Kong edges lower – Markets