Commodities

China stocks snap 6-week winning streak after expected trade deal

Credit: REUTERS/ALY SONG

China stocks inched higher on Friday amid more signs of resilience in the world's second-largest economy, though they posted modest weekly losses as trader pocketed gains following a rally underpinned by optimism around a Sino-U.S. trade deal.

SHANGHAI, Jan 17 (Reuters) - China stocks inched higher on Friday amid more signs of resilience in the world's second-largest economy, though they posted modest weekly losses as trader pocketed gains following a rally underpinned by optimism around a Sino-U.S. trade deal.

** The blue-chip CSI300 index .CSI300 rose 0.1%, to 4,154.85, while the Shanghai Composite Index .SSEC added 0.1% to 3,075.50.

** For the week, CSI300 slipped 0.2% and SSEC lost 0.5%, both snapping six straight weekly gains.

** China's economic growth slowed to its weakest in nearly 30 years in 2019 amid the bruising trade war and sputtering investment, and more stimulus steps are expected this year to help avert a sharper slowdown.

** But data also showed the world's second-largest economy ended the year on a firmer note as trade tensions eased, suggesting a raft of growth-boosting measures over the past two years may finally be starting to take hold.

** Analysts and investors believe more signs of modest recovery in China's economy would help bolster confidence in capital markets.

** China will boost purchases of U.S. goods and services by $200 billion over two years in exchange for the rolling back of some tariffs under the initial trade deal signed by the world's two largest economies.

** With at least a deal in place, investors and consumers would feel things have stabilised, thus helping shore up confidence, said Fan Lei, an economist with Sealand Securities.

** Though some argue the deal had been mostly priced into a recent strong run in the A-share market and it's natural for some profit-taking after the signing of the deal whose content is quite unsurprising.

** Besides, caution also grows as the week-long Lunar New Year holiday approaches when trading is usually thin.

** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was firmer by 0.19%, while Japan's Nikkei index .N225 closed up 0.45%.

** At 07:13 GMT, the yuan CNY=CFXS was quoted at 6.8607 per U.S. dollar, 0.28% firmer than the previous close of 6.88.

** As of 07:14 GMT, China's A-shares were trading at a premium of 26.11% over the Hong Kong-listed H-shares.

(Reporting by Shanghai Newsroom; Editing by Subhranshu Sahu)

((luoyan.liu@thomsonreuters.com; Reuters Messaging: luoyan.liu.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Commodities Videos

#TradeTalks: Underlying Deflationary Pressures – Commodity Review

Jill Malandrino is joined by Peter Borish, Chief Strategist at Quad Group, to discuss deflationary pressures as well as the commodity review.

Feb 7, 2020

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More