China shares up on fund talk
Chinese shares rose in afternoon trading, with consumer and industrial stocks leading the advance, amid speculation that State-run funds intervened in both the equity and currency markets.
The Shanghai Composite Index climbed 0.6 percent, the most in three weeks, after declining toward the 3,000 mark earlier. Great Wall Motor Co added 1.9 percent on a surge in sales, while CSSC Offshore & Marine Engineering Group Co advanced 4 percent. A gauge of mainland stocks traded in Hong Kong headed for the highest close since December, while the ChiNext measure of smaller companies rose to a one-month high.
The Shanghai benchmark has moved less than 1 percent on a daily closing basis in the past three weeks, with yuan declines and lackluster economic data hurting sentiment.
China is scheduled to release a set of August economic data this week, with foreign trade due on Thursday and inflation the following day.
Exports probably fell 4 percent from a year earlier while inflation slowed to 1.7 percent, according to median estimates surveys.
“The government seems to want to keep the market above the 3,000 level,” said WeiWei, an analyst at Huaxi Securities Co in Shanghai. “Every time we see the index approach 3,000, there’s always some suspected buying. Given the economy isn’t likely to be in good shape in the third and fourth quarter, the national team is an important force to stabilize the market.”
The Shanghai Composite closed at 3,090.71, after declining 0.6 percent earlier. The Hang Seng Index climbed 0.5 percent, with its 14-day relative strength gauge rising to 76.6, beyond the 70 level that suggests to some traders that a rally is overdone. in Bloomberg
the gain in the benchmark Shanghai Composite Index on Tuesday