Chinese Shares at Two-Year High Show Market Resilience to Virus
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Chinese stocks jumped to their highest in two years, erasing the last of the declines fueled by the coronavirus outbreak.
The CSI 300 Index closed up 2.2% Thursday at 4206.73, on pace for its best week since November 2015. Stocks globally are rebounding as virus worries recede for equities investors with central banks swinging into action. U.S. shares, after their worst week since the financial crisis, are on pace for their best since 2011.
It took Chinese equities just two weeks to reverse a record $720 billion rout last month, part of the resilience its markets have shown in the face of the outbreak. Stock investors have in recent days shifted to sectors like infrastructure which would benefit from fiscal stimulus pledged by authorities to stem the virus’ economic impact.
The Federal Reserve’s interest-rate cut has also added fuel to a rebound in emerging markets. China’s yuan on Wednesday erased losses since the virus prompted the government to order a drastic shutdown of the economy, with stimulus expectations and a weaker greenback supporting the currency.
— With assistance by Amanda Wang, and Amy Li
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