Latest news with #CSI300Index
Business Recorder
3 days ago
- Automotive
- Business Recorder
China shares set for best week in seven months on financials boost, Mideast truce
SHANGHAI: China stocks were little changed on Friday but were set to notch their biggest weekly gain in more than seven months, led by financial shares, as a ceasefire between Israel and Iran lifted investor sentiment. China's blue-chip CSI 300 Index was flat by the lunch break, while the Shanghai Composite Index lost 0.2%. Hong Kong benchmark Hang Seng was down 0.1%. Chinese brokerage stocks rallied sharply this week, buoyed by easing global geopolitical tensions and improved investor risk appetite, Morgan Stanley analysts said in a note. Over a 6- to 12-month horizon, increased portfolio allocation to China appears likely, supported by improving market fundamentals and growing global investor demand for diversification, they said. Tianfeng Securities jumped 10% on Friday. The CSI 300 Index has risen 2.6% this week, on track for its strongest weekly gain since November 2024, while the Hang Seng Index advanced 3.3%, heading for its best week since March. Onshore financial shares climbed nearly 4% this week. China stocks retreat 7-month high following Mideast calm China's industrial profits swung back into sharp decline in May from a year earlier, as factory activity slowed in the face of broader economic stress. The United States has reached an agreement with China on how to expedite rare earth shipments to the U.S., a White House official said on Thursday, amid efforts to end a trade war between the world's biggest economies. Shares of Xiaomi surged to a record high on Friday, after the company launched a new electric car model with a strong beat on pre-orders. But this has added pressure on other auto makers, with Li Auto and Xpeng down 1.4% and 2.7%, respectively. Hong Kong's HSCI Materials Index and mainland's Non-Ferrous Metals Index rose 2.5% and 2.4%, respectively, as non-ferrous metal prices such as copper broadly rallied.
Business Recorder
5 days ago
- Business
- Business Recorder
China stocks jump to three-month high, HK rallies
HONG KONG: China and Hong Kong stocks rose on Tuesday, joining a broader rally across Asia, as global risk appetite improved following US President Donald Trump's announcement of a ceasefire between Israel and Iran. At market close, the Shanghai Composite Index gained 1.2% to 3,420.57, the highest level since March 20. The blue-chip CSI300 Index also climbed 1.2% to a one-month high. Hong Kong benchmark Hang Seng was up 2.1%, the biggest single-day gain in over five weeks. Around the region, MSCI's Asia ex-Japan stock index was firmer by 2.3%, while Japan's Nikkei index was up 1.1%. Markets reacted positively to the news that US President Donald Trump announced a complete ceasefire between Israel and Iran, potentially ending the 12-day war that saw millions flee Tehran and prompted fears of further escalation in the war-torn region. Risk sentiment in China markets probably won't get much worse from here, and further dips on Middle East tensions might signal a new round of buying opportunities, analysts at Bank of China (International) Securities said in a note. On Tuesday, the CSI AI index led onshore markets with a 2.2% rally, while the financial sector sub-index climbed 1.4% and the rare earth sector added 1.8%. Tech firms and car makers led gains in Hong Kong, with the Hang Seng Automobile Index adding over 3% and the Hang Seng Tech Index climbing 2.1%. China's yuan also strengthened to its highest level in nearly two weeks against a broadly weaker US dollar on Tuesday.
Hindustan Times
6 days ago
- Business
- Hindustan Times
China stocks jump to three-month high, HK rallies on ceasefire optimism
HONG KONG, - China and Hong Kong stocks rose on Tuesday, joining a broader rally across Asia, as global risk appetite improved following U.S. President Donald Trump's announcement of a ceasefire between Israel and Iran. China stocks jump to three-month high, HK rallies on ceasefire optimism ** At midday trading break, the Shanghai Composite Index gained 1% to 3,415.45, the highest level since March 20. The blue-chip CSI300 Index climbed 1.1% to a one-month high. ** Hong Kong benchmark Hang Seng was up 1.9%, the biggest single-day gain in over five weeks. ** Around the region, MSCI's Asia ex-Japan stock index was firmer by 2.3%, while Japan's Nikkei index was up 1.1%. ** Markets reacted positively to the news that U.S. President Donald Trump announced a complete ceasefire between Israel and Iran, potentially ending the 12-day war that saw millions flee Tehran and prompted fears of further escalation in the war-torn region. ** Risk sentiment in China markets probably won't get much worse from here, and further dips on Middle East tensions might signal a new round of buying opportunities, analysts at Bank of China Securities said in a note. ** On Tuesday, the CSI AI index led onshore markets with a 1.9% rally, while the financial sector sub-index climbed 1.2% and consumer staples sector added 1.1%. ** Tech firms and car makers led gains in Hong Kong, with Hang Seng Automobile Index adding over 3% and the Hang Seng Tech Index climbing 2.3%. ** China's yuan also strengthened to its highest level in nearly two weeks against a broadly weaker U.S. dollar on Tuesday. This article was generated from an automated news agency feed without modifications to text.
Business Recorder
6 days ago
- Business
- Business Recorder
HK stocks close up as southbound inflows hit three-week high
SHANGHAI: Hong Kong shares ended higher on Monday, lifted by the strongest southbound inflows via the Stock Connect in three weeks, even as investors remained cautious over the outlook for tighter cash conditions in the market. China stocks were also up. China's blue-chip CSI300 Index closed up 0.3%, while the Shanghai Composite Index gained 0.7%. Hong Kong benchmark Hang Seng was up 0.7%. Onshore investors bought a net 7.9 billion yuan ($1.11 billion) of Hong Kong shares via the Stock Connect on Monday, the highest since May 30. Mainland investors helped drive a rally in Hong Kong shares earlier this year, but their participation has tapered off in the past two months. Hua Hong Semiconductor and SMIC jumped around 4.5% each, after media reported that the US government is weighing additional restrictions on China, including revoking waivers that allow global chip makers to access American technology in China. Meanwhile, the Hong Kong dollar slipped to 7.85 per US dollar on Monday, hitting the weaker end of its trading band for the second time since May 2023. The move may prompt the Hong Kong Monetary Authority to drain liquidity from the banking system to support the currency. Hong Kong market liquidity is unlikely to ease further and may even tighten as Hong Kong Interbank Offered Rates (HIBOR) have likely bottomed out and southbound inflows have slowed, said Kevin Liu, strategist at China International Capital Corporation (CICC). The overnight HIBOR, a key barometer of liquidity, hovered near a record low at 0.01777%. 'Short-term liquidity tightening, uncertainties surrounding tariff negotiations, weakening economic data, and delays in policy support could all contribute to increased market volatility,' Liu said. China's Coal Index rose 1.6%.
Business Times
7 days ago
- Business
- Business Times
US attack on Iran: Market reaction muted, but brace for more volatility ahead, say analysts
[SINGAPORE] Markets reacted in a more muted manner than expected on Monday (Jun 23) after the US launched strikes against three nuclear facilities in Iran over the weekend. But analysts warned that there could be more volatility ahead as the world awaits Iran's reaction. US President Donald Trump announced strikes against three Iranian nuclear facilities on Sunday (Jun 22), boosting Israel's efforts to destroy Iran's nuclear programme. This followed more than a week of Israeli air attacks on Iran's nuclear and military facilities and the US' attempts to persuade Iran to reach a deal to dismantle its nuclear programme. In response, Iran threatened US bases in the Middle East, intensifying concerns over a deepening of conflict in the region. Markets in the Asia-Pacific tumbled slightly initially, but by Monday's close, had recovered most of their losses – a reaction that was not as severe as when Israel first launched attacks. US futures rose marginally ahead of Monday's trading session. Hong Kong's Hang Seng Index closed up 0.6 per cent after earlier losses; on the mainland, the CSI 300 Index ended 0.3 per cent higher. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Japan's Nikkei 225 ended Monday's session around 0.1 per cent lower, and South Korea's Kospi closed 0.2 per cent down. Australia's ASX closed nearly 0.4 per cent lower. Oil prices gained initially, but were soon pared back. On Monday afternoon, they were still at levels higher than before the Jun 13 Israel attacks, with West Texas Intermediate (WTI) at a gain of around 8 per cent, and Brent at 10 per cent higher. Oil markets The spike in oil prices may have faded slightly somewhat intraday on Monday, but the broader trend reflects building pressure on global energy supply chains, said Charu Chanana, chief investment strategist at Saxo. 'Even without a direct shutdown of the Strait of Hormuz, higher shipping costs and insurance premiums could lift energy prices in a more sustained way,' she said. The Strait of Hormuz is a major trading route through which around a fifth of global oil and gas flows. Ipek Ozkardeskaya, senior analyst at Swissquote Bank, also noted that it takes a number of days to a few weeks to meaningfully disrupt global oil flows. 'A weakened Iran, if left with no other options, could still go down that road,' she cautioned. A sustainable jump in oil prices – to around US$100 a barrel for a few months – could have wider implications for the global economy by boosting inflation and preventing central banks from further easing; this would, in turn, weigh on production, business activity and growth, Ozkardeskaya said. OCBC's Vasu Menon said that, historically, past Middle East flashpoints may have caused oil prices to spike initially, but eventually failed to produce a lasting market reaction, partly because the feared impact and disruption to oil supply did not materialise. Equity and overall markets Menon, the bank's managing director of investment strategy and wealth management in Singapore, noted that Middle East markets ended mostly higher on Sunday, despite the US attack on Iran. 'The unfazed response from Middle East markets offers hope that the fallout for other global markets may not be dramatic ... they may not be down and out, and the response may be temporary, and a rebound could materialise eventually,' he said of global markets. Swissquote Bank's Ozkardeskaya noted it was 'extremely interesting' to note that S&P 500 futures were 'behaving like a normal Monday'. 'It really feels like markets have become increasingly unreactive to the news.' Menon added: 'A lot hinges on what Iran will do next, and whether it would sabotage oil supply in the Middle East in retaliation for the US attack. We will have to wait and watch over the next few days, or even a few weeks, to see how Iran responds. 'This may keep investors nervous and markets volatile in the short term, but may not be a game changer for markets. Of greater consequence to the markets may be the reciprocal tariffs that Trump will decide on by Jul 9,' he said. However, Menon urged investors to prepare for more volatility in the coming days and weeks. Saxo's Chanana said that markets now face 'overlapping risks': energy disruption, inflation shock, delayed rate cuts and rising global macro uncertainty. Rising inflation caused by energy disruptions could delay rate cuts by the inflation-sensitive US Fed. 'Trump's abrupt pivot from 'wait and see' to launching strikes reinforces a sense of strategic instability. For businesses and investors, it raises the bar for deploying long-term capital with confidence,' she said. 'While the market's initial reaction appears contained, investors should be cautious about becoming complacent.' But Menon said that these developments 'may not end the global equity bull market' if they don't result in sharply higher inflation. Markets have been very resilient this year, he pointed out, despite tariff shocks and geopolitical risks. 'What's going for markets is a lot of idle liquidity on the sidelines that could provide market support, should there be sharp pullbacks.' Gold One bright spot: Gold. Menon said that the scope for safe havens like gold to continue rising is likely to stay. This comes as global uncertainties continue, while global central banks proceed with diversifying away from their US dollar holdings towards gold. 'We see gold rising to US$3,900 per ounce over a 12-month horizon,' he said. Gold's classic hedge qualities may, however, come under the scanner if yields rise or the dollar strengthens significantly, cautioned Chanana. To her, gold miners and defence contractors stand to gain more attention if tensions from the conflict escalate further. 'These sectors have historically been sought out during geopolitical flare-ups and rising inflation concerns, and offer resilience in the face of volatility, especially if portfolios have more relative cyclical exposure to, say, tech or consumer discretionary,' said the Saxo analyst.
