Local shares were experiencing gains on the back of latest wave of optimism after US President Donald Trump said on Friday a trade deal with China is "potentially very close." Chinese President Xi Jinping also reiterated his desire on Friday for a preliminary trade deal. U.S. national security adviser Robert O'Brien also said over the weekend that an initial agreement is still possible by the end of the year. More importantly, China announced that it is willing to impose stricter penalties on intellectual property (IP) violations. IP has been one of the issues in which the two countries had difficulty seeing eye-to-eye on. Therefore, this move by China was widely welcomed by market participants as it is a step towards finalizing a phase one deal.
Market confidence was reinforced further after reports that both countries were "very close" to a phase one trade deal and that China was willing to negotiate for a phase two or even a phase three trade deal.
The market also found help in robust foreign inflows ahead of the taking effective of MSCI's further A-share.
The materials sector was the best performer thanks to strong gains in iron ore producers. The iron ore spot price (for 62% fines) was up 23% over the past three days. SGIS Songshan (000717 CH) and Anyang Iron and Steel (600569 CH) both surged by the 10% daily cap.
Shenzhen Goodix Technology (603160 CH), a maker of semiconductor components, slid 9.9% to 185.28 yuan after surging 161% this year through last week.
CURRENCY NEWS: China's yuan firmed against greenback on Monday, despite central bank set softer mid-point fixing, as the Chinese and U.S. presidents warmed to signing an initial agreement to pause their 16-month trade war. Prior to market opening, the People's Bank of China set the midpoint rate CNY=PBOC at 7.0397 per dollar, down by 0.13% from 7.0306 per dollar in previous trading session.. The onshore yuan CNY=CFXS was 0.06% up at 7.0363 per dollar.
Powered by Capital Market - Live News