SHANGHAI: China stocks climbed for a third straight session on Monday, led by material firms, as trade war fears ebbed further and after a US jobs report eased worries of inflation and faster rate hikes.
At the close, the Shanghai Composite index was up 0.6 percent at 3,326.70, while blue-chip CSI300 index was up 0.5 percent 4,127.67.
Inflation worries faded on Friday after US data showed nonfarm payrolls jumped by 313,000 jobs last month, but annual growth in average hourly earnings slowed to 2.6 percent after a spike in January.
Trade war fears also ebbed further as the United States opened the way for more exemptions from its steel and aluminium tariffs on Friday, after pressure from allies and intense lobbying from lawmakers.
An index tracking major material firms, including steel and aluminium makers, gained 2 percent on Monday.
Start-up firms extended advance, as investors continued to favour tech firms seen as drivers for China’s “new economy” as Beijing attaches more importance to the quality of the country’s economic growth.
The start-up board ChiNextP closed up 1.4 percent at a four-month high, having gained 7.4 percent so far this year, far outperforming the Shanghai index and the blue-chip index.
Brokerage shares rose, after Beijing published rules allowing foreign control.
Banking sector slid, as China steps up scrutiny of bank shareholders, ordering shareholders that have acquired more than 5 percent stakes in commercial banks through the use of financial products to reduce their holdings within a year.
The largest percentage gainers in the main Shanghai Composite index were Shanghai U9 Game Co Ltd up 10.05 percent, followed by Zhejiang Chint Electrics Co Ltd gaining 10.02 percent and Jiangsu Phoenix Property Investment Co Ltd up by 10 percent.
The largest percentage losses in the Shanghai index were Shanghai Fukong Interactive Entertainment Co Ltd down 9.99 percent, followed by China Fortune Land Development Co Ltd losing 5.1 percent and Poly Real Estate Group Co Ltd down by 4.52 percent.
As of 07:10 GMT, China’s A-shares were trading at a premium of 25.77 percent over the Hong Kong-listed H-shares.
Source: Brecorder.com
