However, market gains capped amid lingering concerns about the country's economic outlook, with China's most populous city and financial centre, Shanghai, continuing to grapple with a staggered lockdown to contain a local COVID-19 surge. The city on Wedneday expanded its lockdown earlier than scheduled as it reported a total of 5,982 new local coronavirus cases.
At close of trade, the benchmark Shanghai Composite Index surged 1.96%, or 62.66 points, to 3,266.60. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 2.55%, or 53.14 points, to 2,137.61. The blue-chip CSI300 index added 2.9%, or 119.963 points, to 4,254.10.
Risk appetite among global financial markets had improved on the positive development in Ukraine-Russia peace talks after Russia on Tuesday promised to scale down military operations around Ukraine's capital Kyiv, while Ukraine proposed adopting a neutral status in face-to-face negotiations.
CURRENCY NEWS: China's yuan was up against the U.S. dollar after the central bank set its strongest daily fixing in seven days, and as hopes for Ukraine-Russia peace talks lifted global risk appetite.
Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.3566 per dollar, 0.12% firmer than the previous fix 6.364. In the spot market, the yuan CNY=CFXS was trading at 6.595 around late afternoon, 0.06% firmer than the previous late session close.
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