Bourses rise on optimism for Sino-US trade truce

CHINESE stock markets saw broadbased gains yesterday amid optimism over US-China trade talks. More than 100 shares hit the daily 10 percent cap on price rises.

The benchmark Shanghai Composite Index surged 2.68 percent or 71.97 points, to close at 2,754.36 points, logging its best day since November 2.

The index was boosted by the strong performance of non-bank financial names and information technology companies.

The smaller Shenzhen Component Index rallied by 3.95 percent to close at 8,446.92 points, while the Nasdaq-style ChiNext enterprise board surged 4.11 percent to end at 1,413.60 points. The blue-chip index climbed 3.21 percent.

The A-share market saw more than 100 shares recording the biggest daily rise, with a combined turnover of 547.7 billion yuan (US$81.01 billion), up from 418.3 billion yuan the previous trading day.

Dongxing Securities saw its shares rise by the daily limit of 10 percent to end at 11.32 yuan per share.

Hong Kong’s Hang Seng Index gained 1.6 percent to 28347.012 points.

The rally came after the news that trade talks between the US and China are set to continue in Washington this week, after the two parities were reported to have made steady and methodical progress on both core and subsidiary issues in negotiations recently concluded in Beijing.

The two countries are both motivated to negotiate due to the economic pain from tariffs imposed by both sides, Ethan Harris, head of global economics research at Bank of America Merrill Lynch, was quoted as saying by Xinhua news agency.

“Despite scant details, investors remain optimistic on trade talks,” analysts at Mizuho bank said in a note.

“With both sides set to resume negotiation in Washington this week, the market will continue to look out for signs of concrete progress.”

Central government policies are also boosting the market.