Tue, 27 Jul 2021

Shanghai Composite and Hang Seng jump sharply

Lola Evans
19 Aug 2019, 17:28 GMT+10

SYDNEY, Australia - Stocks in China and Hong made solid gains on Monday.

Support for Chinese stocks followed a decision on Saturday by the People's Bank of China to implement interest rate reforms to reduce borrowing costs for Chinese businesses and companies.

"The decline in loan rates bodes well for China's credit demand and growth outlook in the second half of 2019 to offset the impact of the ongoing trade disputes," Zhaopeng Xing and Raymond Yeung, economists at ANZ wrote in a research note.

"However, the reform is unlikely to have a stimulative effect on China's property markets with the authorities still insisting on tight regulations to prevent the crowding-out effect from high home prices."

Stocks on the benchmark Shanghai Composite gained 59.27 points or 2.10% to 59,272.10 by the close on Monday.

In Hong Kong, the Hang Seng advanced 557.62 points or 2.17% to 26,291.84.

The positive sentiment in China spread to other bourses leading to regional gains.

In Japan, the Nikkei 225 closed 144.35 points or 0.71% higher at 20,563.16.

The Australian All Ordinaries rose 64.60 points or 1.00% to 6,550.50, by the close Monday.

In late trading in Sydney on Monday, the euro was weak at 1.1095. The British pound was slightly easier at 1.2142.

The Japanese yen inched down to 106.38. The Swiss franc was little changed at 0.9788.

The Canadian dollar rose a touch to 1.3269. The Australian dollar was unchanged at 0.6782. The New Zealand dollar drifted down to 0.6422.

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