Stocks edge up on BOJ pol­icy shift

China Daily (Canada) - - BUSINESS - By REUTERS

Chi­nese main­land stocks rose slightly on Wed­nes­day, aided by strength in prop­erty and fi­nan­cial stocks, al­though the gen­eral mood re­mained cau­tious.

The mar­ket was also un­der­pinned by a surge in ma­jor steel­mak­ers as in­vestors bet on the next tar­get of gov­ern­ment-led re­struc­tur­ing, af­ter the dis­clo­sure of merger plans be­tween Baoshan Iron and Steel andWuhan Iron and Steel.

The blue-chip CSI300 in­dex rose 0.3 per­cent to 3,266.64 points, while the Shang­hai Com­pos­ite In­dex gained 0.1 per­cent to 3,025.87 points.

An­gang Steel jumped 4.8 per­cent, while shares of Ben­gang Steel Plates surged 6.4 per­cent. Maan­shan Iron & Steel gained 2.8 per­cent.

In the Hong Kong mar­ket, shares also rose as Asian mar­kets were cheered by the Bank of Ja­pan’s de­ci­sion to over­haul its pol­icy frame­work, with in­vestors’ fo­cus now shift­ing to the US Fed­eral Re­serve’s meet­ing later in the global day.

The mar­ket has also been bol­stered by strong main­land money in­flows. The Hang Seng in­dex rose 0.6 per­cent to 23,669.90 points.

“There’s not much volatil­ity in the mar­ket, so in­vestors who have lost their sense of di­rec­tion are look­ing else­where for in­vest­ment op­por­tu­ni­ties,” said Li­nus Yip, strate­gist at First Shang­hai Se­cu­ri­ties Ltd.

On Wed­nes­day, main­land in­vestors bought 3.8 bil­lion yuan ($569.60 mil­lion) of Hong Kong stocks via the Shang­hai-Hong Kong Con­nect Pro­gram, sus­tain­ing the pace of in­flows over the past month.

The Bank of Ja­pan over­hauled its mon­e­tary pol­icy frame­work ear­lier in the day, switch­ing to tar­get­ing in­ter­est rates, af­ter more than three years of mas­sive money print­ing and bond buy­ing did lit­tle to jolt the econ­omy out of a decades-long funk.

Mar­kets are now watch­ing out for the US Fed­eral Re­serve pol­icy de­ci­sion and clues on its rate out­look.

Both hawk­ish and dovish com­ments fromFed­of­fi­cials have stoked volatil­ity in fi­nan­cial mar­kets, al­though con­sen­sus is now cen­tered on a US rate hike in De­cem­ber.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.