China stocks roar back on reopening 'rumours'; oil price rises 1%

Chinese stocks roared back from a rout and the yuan strengthened as speculation mounted that policymakers are making preparations to gradually exit the stringent Covid Zero policy that’s been the biggest bugbear for investors.

A gauge of Chinese stocks listed in Hong Kong surged almost 7 per cent intraday, rebounding from its lowest close since late 2005, as unverified social media posts circulated online that a committee was being formed to assess scenarios on how to exit Covid Zero. Shares pared gains after Chinese Foreign Ministry spokesman Zhao Lijian said he’s “not aware” of such a committee.

The onshore yuan rose as